sjrcpa
Level 15
03-03-2025
04:45 PM
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You can't.
Maybe $10,000 of the distribution can be exempt from the penalty. Was the withdrawal from an IRA? Or from 401(k), etc?
Or, how old is the client?
Look at Form 5329 and its instructions for applicable exceptions to the penalty.
The more I know the more I don’t know.