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sonnyboy53
New Member

Why am I being 280.00 dollars for early withdrawal of IRA for a person that 72 yers old

 
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bwa
Alumni
Alumni

Why am I being 280.00 dollars for early withdrawal of IRA for a person that 72 yers old

You would be charged tax on the early withdrawal but not the penalty for a premature distribution.  If charged for the latter, go back to the personal info tab and make sure your birth date is entered correctly.

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2 Replies
bwa
Alumni
Alumni

Why am I being 280.00 dollars for early withdrawal of IRA for a person that 72 yers old

You would be charged tax on the early withdrawal but not the penalty for a premature distribution.  If charged for the latter, go back to the personal info tab and make sure your birth date is entered correctly.

dmertz
Level 15

Why am I being 280.00 dollars for early withdrawal of IRA for a person that 72 yers old

TurboTax goes by the code in box 7 of the Form 1099-R, not the personal info.  only if the code in box 7 includes code 1 or code J will TurboTax potentially calculate an early-distribution penalty on the distribution.  However, if the payer does use these codings, you can claim an Other reason exception to the early-distribution penalty.  If code 1 or J is present, contact your IRA custodian to inform them of your correct birthdate so that they report future distributions correctly.

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