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Slim4
October 4, 2020
Question

10% Early Withdrawal on IRA

  • October 4, 2020
  • 1 reply
  • 0 views

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? 

    1 reply

    fanfare
    fanfare
    Employee
    October 4, 2020

    The penalty is on early distributions included in income.

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

      S
      Slim4Author
      October 4, 2020

      Thank you for your reply. 

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