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Retirement tax questions
Do you have a question?
A withdrawal from a 401(k) is a taxable event and the distribution is entered on your tax return as ordinary income. If you are under the age of 59 1/2 there will be a 10% early distribution penalty assessed and entered on your tax return as a tax liability.
Having bills to pay is not an exception to the early withdrawal penalty.
March 5, 2024
1:27 PM