I was laid off from my job in 2024 at the age of 57. I was unemployed for 8 months and used up all of my unemployment.
I participated in a 401k and a Roth while I worked there.
I emptied both retirement accounts (paid some taxes on the 401k, none on the Roth).
I also have a personal IRA that I withdraw from also during my unemployment period.
My 1099 R, Box 7 code 1 (Early distribution (except Roth), no known exception)
Do I qualify for a penalty exception of any kind, including The Rule of 55?
Is my 1099 R Box 7 wrong?
If I do qualify, which of my 3 accounts would it apply to?
See Separation of Service in this TurboTax FAQ. Enter all of your 1099-R form as is. After each one you will be asked follow-up questions that will cover the penalty exceptions.
How does a 1099-R affect my taxes?
IRS Tax Topic 558 - You won't have to pay the 10% early withdraw penalty. Distributions made to you after you separated from service with your employer after attainment of age 55 are exempt from the penalty.