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Although income tax was withheld, if the distribution from your retirement plan was early it is subject to an additional 10% tax unless an exception applies. The exceptions available depend on the type of retirement plan (IRA, 401(k), etc.). During the 1099-R interview, TurboTax will ask questions to determine if you qualify for an exception to the early distribution penalty.
For more information, please see the IRS document below that applies to your situation.
IRS Tax Topic 557 - Additional Tax on Early Distributions from Traditional and Roth IRAs
IRS Tax Topic 558 - Additional Tax on Early Distributions from Retirement Plans Other Than IRAs
Although income tax was withheld, if the distribution from your retirement plan was early it is subject to an additional 10% tax unless an exception applies. The exceptions available depend on the type of retirement plan (IRA, 401(k), etc.). During the 1099-R interview, TurboTax will ask questions to determine if you qualify for an exception to the early distribution penalty.
For more information, please see the IRS document below that applies to your situation.
IRS Tax Topic 557 - Additional Tax on Early Distributions from Traditional and Roth IRAs
IRS Tax Topic 558 - Additional Tax on Early Distributions from Retirement Plans Other Than IRAs
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