Question

What does separation from service the year during or after agee 55 for form 1099-R mean?

Forum|Forum|5 years ago
February 20, 2021
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TurboTax Deluxe Online

"Separation from service" means you left the job, whether by retirement, quitting, fired or laid off.

Distributions made to you after you separated from service with your employer if the separation occurred in or after the year you reached age 55 qualify for an exception of the 10% early withdrawal penalty (IRS Exceptions to Tax on Early Distributions )

Therefore, if you left your job and were 55 or older and received a distribution then you won't have to pay the 10% early withdrawal penalty.

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