Penalty on early withdrawal of savings - Why?

[gerygutnik]

Hi TurboTax experts! 

For the first time ever, I have "penalty on early withdrawal of savings" on my taxes. 

I did not withdraw money from my retirement accounts. I did the usual backdoor Roth IRA conversion from Traditional IRA and a mega backdoor 401k conversion: The first does not show taxable amount in 4b of 1040, and the latter marked as ROLLOVER in 5b. 

Any guidance on why do I have an early withdrawal penalty? 

Thank you for your guidance!

[LindaS5247]

If the penalty was asserted with respect to the transactions you are stating above:

If you're under the age of 59½, you typically have to pay a 10% penalty on the amount withdrawn. The IRS does allow some exceptions to the penalty, including: Total and permanent disability. Unreimbursed medical expenses (greater than 7.5% of adjusted gross income).

Click here for additional information on managing your retirement account and taxes.

Click here for additional information on Early Withdrawals from your 401-K.

Click here for exceptions to the penalty for early withdrawal.

[VolvoGirl]

Where does it say early withdrawal of SAVINGS?  Maybe it's for something else.  Did you cash in a CD early?  That would be on a 1099INT box 2.   And it would be an adjustment to income not a penalty you have to pay.  

[gerygutnik]

@LindaS5247 But, I did not withdraw. It was contributions that were converted into Roth, no withdrawals. 

[gerygutnik]

@VolvoGirl Thanks for pointing it out. Totally forgot that I broke a CD. Definitely that adjustment. Thank you! 

[VolvoGirl]

That penalty is a good thing.  It is subtracted from your income.