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Returning Member
posted Oct 3, 2020 5:23:52 PM

10% Early Withdrawal on IRA

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? 

0 2 524
2 Replies
Level 15
Oct 3, 2020 5:39:27 PM

The penalty is on early distributions included in income.

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

Returning Member
Oct 3, 2020 5:55:30 PM

Thank you for your reply.