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February 15, 2021
Question

Is a distribution from an inherited IRA incur the 10% early withdrawal penalty if not age 59 1/2? I read somewhere that it doesn't but does turbotax accommodate this?

  • February 15, 2021
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1 reply

CatinaT1
February 15, 2021

This will be determined by your 1099R.  There is one or two distribution codes listed in box 7.  If the distribution is due to death, no, you will not incur a penalty.  TurboTax will account for this based on the distribution code(s).

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