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Is there a way to remove the IRA early withdrawal penalty? I am over 59 1/2 and should be not charged it.

 
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3 Replies

Is there a way to remove the IRA early withdrawal penalty? I am over 59 1/2 and should be not charged it.

When did you turn 59 1/2?  Check your birthdate under My Info.   If you are married be sure it's under the right spouse.

Is there a way to remove the IRA early withdrawal penalty? I am over 59 1/2 and should be not charged it.

I turned 59 1/2 in Dec 2020.  I was not charged the penalty last year.  

dmertz
Level 15

Is there a way to remove the IRA early withdrawal penalty? I am over 59 1/2 and should be not charged it.

If you were over age 59½ at the time of the distribution (which would be the case for a 2021 distribution if you reached age 59½ in 2020), you can claim an Other reason exception to the early-distribution penalty.  This would only apply the the taxable amount of a distribution reported with either code 1 or code J in box 7 (perhaps in combination with some other code).

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