topic 10% Early Withdrawal on IRA in Get your taxes done using TurboTax

10% Early Withdrawal on IRA

Slim4 — Sun, 04 Oct 2020 00:23:52 GMT

How is the 10% early withdrawal penalty on an IRA calculated? Turbo Tax is calculating it on the taxable portion not the entire distribution. Which is correct?

Re: 10% Early Withdrawal on IRA

fanfare — Sun, 04 Oct 2020 00:39:27 GMT

The penalty is on early distributions included in income.

If you had a basis, the non-taxable part would not be penalized.

Re: 10% Early Withdrawal on IRA

Slim4 — Sun, 04 Oct 2020 00:55:30 GMT

Thank you for your reply.