Get your taxes done using TurboTax

Yes, you can claim an exception to the penalty for up to $1000 for a personal emergency expense.  After entering the 1099-R for the withdrawal, Turbotax will ask about situations that might qualify for a reduced penalty and that is one of the choices.

 

Note that you can't claim the personal emergency exception more than once per 3 years, unless you either (a) repay the emergency distribution, or (b) make new contributions into the 401k that are more than the amount of the previous emergency withdrawal. 

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