I started withdrawing money from my pension when I retired at 69 1/2 but it says I took money out early. why

Forum|Forum|2 years ago
March 29, 2024
2 replies
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why is the site saying i took money out early from retirement when i didn't.

TurboTax Deluxe Online

Best answer by dmertz

TurboTax goes by the code in box 7 of the Form 1099-R. A code 1 included in box 7 indicates an early distribution and would be an erroneous coding by the payer since you are over age 59½. For a distribution from a traditional pension plan to someone over age 59½, the code should be 7.

dmertzAnswer

Employee

SteamTrain

Employee

@mjsorendo

UNLESS...unless you mistyped your age in 2023 as 69 1/2 when you meant 59 1/2 ?

IF so, you might need to edit that 1099-R. IF 2023 was the year you turn 59.5, there is a follow-up question, several pages after the main 1099-R form, where the software actually asks if you were under or over 59.5 for the $$ taken out. You need to select the one for after age 59.5 . The software asks this even if the code in box 7 was a 7.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*