topic 10% early withdrawal penalty at 68 years old? Why? in Deductions & credits

10% early withdrawal penalty at 68 years old? Why?

mataluir — Thu, 05 Feb 2026 21:54:55 GMT

Turbo Tax is showing a 10% penalty on a 401k withdrawal that I made last year. I am 68 years old. Why would my withdrawal be subject to a penalty? The box 7 has a 7 in it and the SEP/IRA/Simple box is unchecked.

Re: 10% early withdrawal penalty at 68 years old? Why?

DawnC — Thu, 05 Feb 2026 22:09:13 GMT

Why do you think there is a penalty? You might want to delete the form and re-enter it. Make sure your birthday is entered. TurboTax will apply regular income tax to a 401K distribution, but there is no penalty if you are over the age of 59.5.

Re: 10% early withdrawal penalty at 68 years old? Why?

mataluir — Thu, 05 Feb 2026 22:45:18 GMT

I found that another 1099R was issued with the wrong code for distribution, had 1 instead of 7.

thanks for the help! Much appreciated.