Yes, the 10% penalty still applies.
Why did you decide to take out your retirement savings?
Zen said:
Yes, the 10% penalty still applies.
Why did you decide to take out your retirement savings?
I was reckless and used it for gambling. Thanks for clarifying.
You do need to file because of the 10% penalty for early withdrawals. But as mentioned, you can submit Form 5329 alone since it has a signature spot.
Wait for the 2024 version of Form 5329, which should be posted here: About Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts | Internal Revenue Service. The link has the form and instructions.
@Yan
Since the person who posted has gambling income (even if it wasn’t much) and is eligible to be a dependent, it seems their unearned income might be over the $1,300 threshold, so filing is needed.