Question
10% Early retirement distribution penalty exemption
Dear Community,
My clients' took early Retirement distributions to cover their children's adoption, education costs and pay their prior tax liabilities.
The distribution code is 1 - distribution is not exempt.
However, my clients' took out the funds for purposes that qualify for the distribution to be exempt from the 10% penalty.
What kind of documentation would you request to support the expenses?
Thanks in advance!
