Question

If TurboTax says the IRS lets me withdraw my retirement early without tax due to disability, why am I paying taxes on it?

Forum|Forum|1 year ago
April 4, 2025
2 replies
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It doesn't say you you have no tax, it is saying that if you qualify then you would not have to pay the 10% tax penalty. There is a 10% early withdraw penalty if you do not meet one of the exceptions to the penalty.

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Opus 17

Any time you have retirement funds where the contributions were tax-free, you must pay income tax on the withdrawals. This includes tax deductible contributions, or salary deferrals, or pension contributions paid by your employer.