MinhT1
Expert Alumni

Retirement tax questions

There is no exception to the early withdrawal penalty for a hardship withdrawal from a 401(k) account.

 

There is however an exception for an emergency withdrawal of up to $1,000 once a year.

 

Please read this TurboTax Help article.

 

In TurboTax Online, please follow these steps:

 

  1. After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue 
  2. Follow the interview until you arrive at the page titled Did you use your IRA to pay for any of these expenses?
  3. Enter the amount of your amount up to $1,000 in the box next to Emergency Personal Expense and click Continue
  4. Your early withdrawal penalty will be waived.

 

Edited 01/28/2025 | 7:13 AM PST

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