Skip to main content
March 7, 2025
Question

I took an early distribution on my pension due to disability. The program states the early withdrawal is "tax free" but it is charging me taxes on this amount anyway

  • March 7, 2025
  • 2 replies
  • 0 views
No text available

2 replies

DoninGA
Employee
March 7, 2025

Where are you seeing the "tax free" statement when entering the Form 1099-R?

 

If you are under the retirement age for where you worked and the code in box 7 is a 3 then the distribution is entered on the federal tax return on Line 1h of the form 1040 as earned income.

March 7, 2025

Your distribution is taxable, however, the early withdrawal penalty will be waived. 

For more information, check: irs.gov

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