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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.

View solution in original post

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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