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February 17, 2021
Question

Can you tell me why it tells me I was not 59 1/2 when I received my check from IRA

  • February 17, 2021
  • 3 replies
  • 0 views
I have 1099-R of which I entered, but it says I was not 59 1/2 years old and I was.

3 replies

February 17, 2021

I will suggest you to double-check your entry for your birthdate.  Here are the steps:

 

In TurboTax online,

  • Sign back into your account
  • To your left, select My Info
  • On screen, "Personal info summary", under your name, select Edit to check your birthdate

If you are under age 59 1/2, the distribution from the retirement accounts is considered as an early withdrawal.  You have to be under 59 1/2 when the distribution was taken out.  Generally, you are subject to an additional 10% penalty of your entire distribution unless you met certain criteria.  Due to the Section 2202 CARES Act, if your distribution is related the Covid-19, you will not be liable for this additional penalty.  For more information from the IRS, click here: Covid Relief.  If your distribution is not related to the Covid, you will need to pay the penalty. 

 

 

 

 

Employee
February 17, 2021

I believe that TurboTax is asking you, not telling you.  If TurboTax is asking if you were under or over age 59½ at the time of the distribution, answer correctly and continue forward.  Each time TurboTax asks this question it simply presents a default answer which you must change if the default answer is not correct.

December 26, 2021

In the income section the distribution code must be correctly set.  Code 1 and 2 are for early distributions.  Code 7 is a normal distribution to a person over 59 1/2.