I turned 59.5 in 2023. I took IRA distributions prior to, and after, turning 59.5. Turbo Tax wants to assess a 10% early withdrawal penality for all distributions taken in 2023, not just those prior to age 59.5. Is there a way I can segrate the distributions using Turbo Tax so I am not charged a penality for taking distributions after 59.5? Thanks,
The IRA custodian should have issued separate Forms 1099-R, one reporting the distributions made before reaching age 59½ and another for the distributions made after reaching age 59½. If the custodian reported all of the distributions with code 1, you can claim an exception to the penalty on the amount distributed after age 59½ by entering this amount in the "Incorrect Early Distributions" box that TurboTax provides on the page that asks, "Did you use your IRA to pay for any of these expenses?" TurboTax will include this amount on Form 5329 line 2 with code 12.
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