1099-R issued under decree divorced

[Mrssanny]

The customer received the 1099-R (box 7 showed code 1)and 2b is marked x total distribution. that she have to pay 10% penalty, plus taxes for this income? is any exemption of penalty for her?

[Lion]

Did she receive this due to a QDRO? Did the distribution come from the spouse's plan? Or, did the QDRO split the plan, and then she took a distribution from her plan? Read 72(t)(2)(C) as well as the other Exceptions to see if any of them fit her circumstances.

[JON]

There still would be an exception - sue your attorney if a QDRO was not used.

[RitaB]

Not if she made an early withdrawal

The customer received the 1099-R (box 7 showed code 1)and 2b is marked x total distribution. that she have to pay 10% penalty, plus taxes for this income? is any exemption of penalty for her?

No, there is no exception for her, unless the code is incorrect and she's really 60 years old or something. Now would be a good time to be 60. Or not to have cashed this.

[taxea]

what is the source of the money distributed to her? Read the divorce agreement. If it was from her spouse's retirement it may be taxable. Too much not known to properly advise you.