Early pension payout

mlwhite — Fri, 24 Jan 2020 23:02:29 GMT

My husband, age 50, received an early pension payout last year. Will turbo tax file all forms necessary for that or do we need to fill out a form 5329 to claim the 10% penalty for being younger than 59 1/2?

Re: Early pension payout

MinhT1 — Fri, 24 Jan 2020 23:20:37 GMT

In TurboTax, your husband needs to enter the form 1099-R that he received for the distribution. On that form, there is a code in box 7 which will indicate that the distribution is an early withdrawal. He has to follow the 1099-R to the end. If he is liable for the 10% penalty, TurboTax will calculate it, fill out form 5329 and include the amount of penalty in the final refund or tax due on the tax return. He does not have to pay the penalty separately.

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Early pension payout

Re: Early pension payout