MindyB
Expert Alumni

Retirement tax questions

Yes, sounds like it may qualify as an "emergency." An emergency will allow you to make a withdrawal, still subject to tax, but without the 10% early withdrawal penalty.  You can take one financial withdrawal emergency per year, not to exceed $1,000. So, $2,000 of your withdrawal won't be eligible for penalty relief.

 

Here is some more information: What are the exceptions to the penalty for an early withdrawal from my 401(k)?