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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.
‎February 18, 2026
11:32 AM