dmertz
Level 15

Retirement tax questions

"Other" does not apply.

 

$1,000 of the $3,000 would qualify for the emergency-expense exception only if you actually needed the money for an unforeseeable or immediate financial need.  Losing a job would not necessarily create such an financial need.

 

See Q&A 1 and 2 in IRS Notice 2024-55:  https://www.irs.gov/pub/irs-drop/n-24-55.pdf