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Normal or Separation from Service Distribution


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Employee is 60 years old and self terminated from employment. Now wants lump sum distribution. Is the distribution code Normal distribution [7] or Separation from Service but Exempt from 10% penalty [2]?

Guest bmukherji
Posted
Employee is 60 years old and self terminated from employment. Now wants lump sum distribution. Is the distribution code Normal distribution [7] or Separation from Service but Exempt from 10% penalty [2]?

Since the employee is past 59 1/2 the code should be 7.

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