There are exceptions to the 10% tax penalty for early distributions:Death or total and permanent disabilitySeries of substantially equal periodic payments based on life expectancyQualified first-time homebuyer distributions up to $10,000Qualified higher education expensesCertain medical insurance premiums paid while unemployedUnreimbursed medical expenses that are more than a certain amount of your adjusted gross incomeIRS levyCertain distributions to qualified military reservists called to active dutyOnce you enter the distribution information from your 1099-R form, we'll help you check for any exceptions that could reduce the tax.

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talkitalia2

Level 2

Question

On a 1099R what qualifies as an exception for the code 2- Early distribution (except Roth)?

Forum|Forum|7 years ago
June 8, 2019
1 reply
0 views

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TurboTax Self Employed Online

Anonymous

There are exceptions to the 10% tax penalty for early distributions:

Death or total and permanent disability
Series of substantially equal periodic payments based on life expectancy
Qualified first-time homebuyer distributions up to $10,000
Qualified higher education expenses
Certain medical insurance premiums paid while unemployed
Unreimbursed medical expenses that are more than a certain amount of your adjusted gross income
IRS levy
Certain distributions to qualified military reservists called to active duty

Once you enter the distribution information from your 1099-R form, we'll help you check for any exceptions that could reduce the tax.

macuser_22

Alumni - Champ

No. A "hardship" is a regular distribution subject to tax and early distribution penalty. "Hardship" only allows you to even have a distribution prior to retirement. Some employer plans do not allow hardship distributions at all.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**