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March 24, 2021
Question

How do I clear a penalty for early pension distribution? I did not request the early dispersion. The plan was dissolved.

  • March 24, 2021
  • 1 reply
  • 0 views
My employer gave the option for lump sum or annuity payments.

1 reply

DoninGA
Employee
March 24, 2021

You had 60 days to rollover the distribution to another tax deferred retirement account.  If you did not do that and are under the age of 59 1/2 then you are liable for the 10% early distribution penalty.