Question

On my 1099R question #7 I am supposed to mark #1 for early distribution, But I did not ask for it early it was automatically sent to me when I was laid off?

Forum|Forum|6 years ago
March 30, 2020
1 reply
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What can I do to avoid this charge?

TurboTax Deluxe Online

Employee

This is an early-distribution if it was made to you before age 59½. You had the option to roll this money over to a traditional IRA within 60 days to avoid the early-distribution penalty, but it's too late for that now. The only way that you can avoid the penalty is if you qualify for one of the exceptions for a distribution from a qualified retirement plan:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions