cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

Separated from employer at age 56, withdrew from 401K, so I should get the over 55 exemption. Box 7 on 1099R has code 1 but, code 1 in Turbo Tax assesses the penalty.

Note - if I put Code 2 into Turbo Tax, it eliminates the penalty, but doesn't match my 1099R

1 Best answer

Accepted Solutions
New Member

Separated from employer at age 56, withdrew from 401K, so I should get the over 55 exemption. Box 7 on 1099R has code 1 but, code 1 in Turbo Tax assesses the penalty.

In TurboTax, you can indicate that you separated from service after age 55. As you progree through the interview screens, you would indicate this on the screen below. Click to enlarge.

View solution in original post

2 Replies
Level 15

Separated from employer at age 56, withdrew from 401K, so I should get the over 55 exemption. Box 7 on 1099R has code 1 but, code 1 in Turbo Tax assesses the penalty.

That sounds like the plan administrator for your 401(k) account has the incorrect date of birth for you.  Contact the plan and get a corrected Form 1099-R.
New Member

Separated from employer at age 56, withdrew from 401K, so I should get the over 55 exemption. Box 7 on 1099R has code 1 but, code 1 in Turbo Tax assesses the penalty.

In TurboTax, you can indicate that you separated from service after age 55. As you progree through the interview screens, you would indicate this on the screen below. Click to enlarge.

View solution in original post