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Level 1

Question

I would like to cash out my 401k for dental expenses. Do I have to pay the penalty?

Forum|Forum|7 years ago
June 7, 2019
1 reply
10 views

No text available

TurboTax Deluxe Online

Level 15

If the dental expenses would normally be a medical expense (as opposed to cosmetic) you can take an amount greater than 7.5% of your AGI without a penalty. You still have to pay income tax on the amount withdrawn.

Level 15

More accurately, the amount that is exempt from penalty is an amount distributed up to the amount of non-reimbursed medical expenses that exceed 7.5% of AGI. This is the amount of medical expenses that would appear on Schedule A line 4 if you were to itemize deductions (without any requirement that you actually itemize).