MinhT1
Expert Alumni
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Retirement tax questions

No.

 

The distribution is always taxable. If you are under 59 1/2, there is also a early withdrawal penalty of 10%. There are exceptions to this penalty.

 

But the purchase if a HVAC system to replace a failed unit is not one of the exceptions to the early withdrawal penalty.

 

You could however use the exception for a financial emergency withdrawal for up to $1,000.

 

Please read this TurboTax Help article.

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