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Returning Member
posted Nov 16, 2022 10:38:34 AM

Will Turbo Tax software help in defining "Exemptions" for IRA/401K early withdrawals???

Will Turbo Tax software assist in defining Exemptions (Hardship) IRA/401K Early withdrawals of 401k/IRA when filing taxes? I believe it may be Form 5329???

 

Under age of 55 and would get 10% penalty unless exemption exist (which they do).

 

 

 

 

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1 Replies
Level 15
Nov 16, 2022 10:42:02 AM

There are no 'hardship' exceptions for the 10% early distribution penalty for either a 401(k) or an IRA.

 

Go to this IRS Tax Topic for 401(k) exceptions - https://www.irs.gov/taxtopics/tc558

 

Go to this IRS Tax Topic for IRA exceptions - https://www.irs.gov/taxtopics/tc557