My employer closed a small pension, because of covid and my spouse being furloughed we kept the lump sum rather than rolled it. Am I exempt from the 10% penalty?

[dkrumanaker]

If I'm exempt do I put the full amount in the "other" box?

[DoninGA]

No, you are not exempt from the 10% early distribution penalty if you are under the age of 59 1/2 and did not rollover the distribution within 60 days to another tax deferred retirement account. 

There is no exemption if the distribution was not directly related to Covid-19.

[fanfare]

This is a COVID distribution if it occurred in 2020 before Dec 31, 2020.

Respond appropriately to TurboTax and the penalty is waived.

[dkrumanaker]

@fanfare  Yes, this was in 2020 and prior to 12/31/20. What will I need to do to note this when filing?

[dkrumanaker]

@DoninGA I appreciate your response. I've been reading a lot of information that conflicts with your response, due to the cares act. I want to get the most out of my pension but I don't want to make an error on my taxes!

[fanfare]

Your wife spouse was furloughed and that is enough to qualify you.

enter the 1099-R.

eventually you will come to the question about qualified disaster (COVID-19)

check the box.