topic I made a withdrawal from my 401K for 2025 because I was leaving my full time position. It was penalty free because I turned 55 last year. Where do I show that in Retirement tax questions

I made a withdrawal from my 401K for 2025 because I was leaving my full time position. It was penalty free because I turned 55 last year. Where do I show that

ac197024 — Tue, 31 Mar 2026 16:15:18 GMT

It's not giving me the option when I enter the 1099-R

Re: I made a withdrawal from my 401K for 2025 because I was leaving my full time position. It was...

MinhT1 — Tue, 31 Mar 2026 17:08:42 GMT

If you separate from service during or after the year you turn 55, your early 401(k) distribution is exempted from the 10% penalty (but not from income tax).

Please read this TurboTax Help topic.

In TurboTax Online, please follow these steps:

After you have entered all your forms 1099-R, on the 1099-R summary page, click Done
Follow the interview until you arrive at the page titled Let's see if we can lower your tax bill. Click Continue
On the next page, click the pen icon next to your name
Continue the interview to the page These situations may lower your tax bill
Enter the amount of the distribution in the box next to Separation from Service and click Continue
Your early withdrawal penalty will be waived.

Re: I made a withdrawal from my 401K for 2025 because I was leaving my full time position. It was penalty free because I turned 55 last year. Where do I show that

dmertz — Tue, 31 Mar 2026 21:31:27 GMT

If the Form 1099-R has code 2 in box 7, the distribution is automatically treated as being exempt from an early-distribution penalty and there is no need to file Form 5329 to claim this exception.