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

[mataluir]

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.

[DawnC · Accepted solution]

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.  

[mataluir]

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

thanks for the help! Much  appreciated.