Solved
If I withdraw from my 401K for a qualified Hardship Withdraw do I still pay a penalty?
My wife, an RN, had an injury at work and became disabled and no longer works. She now draws Social Security Disability. Because its not close to what she was earning as an RN, this has caused us a hardship. I still work fulltime, as I am still in my early fifties, and I have a sizable 401K. I am eligible to take out a Hardship Withdraw for the purpose of paying off our primary residence. My question is: If I take a withdraw due to a hardship, do I still have to pay the penalty for taking a withdraw prior to being 59-1/2 years old? I do understand I still have to pay the taxes. But would uncle Sam wave the penalty because of the hardship?
Thanks in advance,
RB
