Question

I took a with drawl from my IRA to pay off my home , box 7 with code 7 states its a normal with draw , so why am i getting a penalty ? I was over age 59 and half .

Forum|Forum|2 years ago
March 18, 2024
6 replies
0 views

No text available

TurboTax Deluxe Online

If you are aged over 59 1/2 at the time of withdrawal, you shouldn't have to pay the penalty for early withdrawal.

Please revisit the My Info section in TurboTax Online and verify that you have correctly entered your date of birth.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

1

1362f3f52eeb

I am over 59 1/2. I closed four IRA'S (after taking required RMD's). Where do I report this on TurboTax? I've searched all over and can't find a reporting location.

6

67susanmakAuthor

everything is correct for personal information, I was 59 years 7months and 2 week of age, granted i was close to cut off ,but older than 59 !/2 !

DoninGA

Employee

After you completing entry of the Form 1099-R the program would have taken you to a screen where you could have entered an exception to the early distribution penalty (Form 5329). Where you should have entered the amount of the distribution in the box labeled Incorrect Early Distributions. This would have removed the penalty.

Go back and on the Form 1099-R Entries screen, edit the Form 1099-R. Follow the interview until you get to the screen labeled These Situations May Lower Your Tax Bill

VolvoGirl

Employee

Are you married? Is your spouse younger? Be sure you entered the 1099R under the right person.

D

dmertz

Employee

Perhaps you are seeing a penalty for underpayment of taxes, not an early-distribution penalty. TurboTax doesn't treat code 7 as being subject to an early-distribution penalty.

6

67susanmakAuthor

I got it ,thanks !

6

67susanmakAuthor

Thanks, I figured it out.