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Is there going to be an update to the screen asking if I drew my military pension before turning 59 1/2? Military pensions are not subject to the 10% penalty.
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Is there going to be an update to the screen asking if I drew my military pension before turning 59 1/2? Military pensions are not subject to the 10% penalty.
When asked "... did you withdraw this retirement money early?", answer "No". This is an issue that TurboTax is aware of.
You do not need to wait for a correction, just answer "No" and the program will calculate your tax without applying a 10% early withdrawal penalty.
See @SteamTrain response for this issue: Should turbo tax calculate 10% distribution penalty on military retirement pension if under 59 1/2?
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Is there going to be an update to the screen asking if I drew my military pension before turning 59 1/2? Military pensions are not subject to the 10% penalty.
You are correct. TurboTax should not be asking penalty questions for military retirement pay. Military retirement pay is not subject to an early withdrawal penalty because they are not qualified retirement accounts.
First, the distribution code in box 7 should be "7" normal distribution when entering the 1099-R info.
Next, in the follow on questions select "Non-qualified plan".
If the experience remains please post again with the TurboTax product and version you are using.
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Is there going to be an update to the screen asking if I drew my military pension before turning 59 1/2? Military pensions are not subject to the 10% penalty.
Thank you for the response. I have entered the data as stated; however, there is a question prior to the non-qualified question that asks "... did you withdraw this retirement money early?" If I select yes (which is correct), the program adds the 10% penalty. I can select no, and the 10% penalty will not be assessed. I have used the program (online) for several years, and this has never been an issue. The one difference this year is that I did reach the 59 1/2 milestone, which may be triggering a glitch.
I am using the online version of TT.
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Is there going to be an update to the screen asking if I drew my military pension before turning 59 1/2? Military pensions are not subject to the 10% penalty.
When asked "... did you withdraw this retirement money early?", answer "No". This is an issue that TurboTax is aware of.
You do not need to wait for a correction, just answer "No" and the program will calculate your tax without applying a 10% early withdrawal penalty.
See @SteamTrain response for this issue: Should turbo tax calculate 10% distribution penalty on military retirement pension if under 59 1/2?
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