401k withdrawal spouse disabled

traffakk · ‎June 6, 2019

My husband to out an early withdrawal from his 401K to help with expenses due to my disability. Are we able to use the exception of the 10 percent since it's from his 401K not mine?

MargaretL · ‎June 6, 2019

No, you cannot, unfortunately. Only the owner of the retirement account can take this exception. In other words, you husband must be disabled if he takes his retirement out. It, unfortunately, is not allowed otherwise, even though you may be filing jointly.

However, did you pay any medical expenses with the distribution money? The amount of unreimbursed medical expenses can qualify for 10% penalty exception... amount must be over 7.5 % AGI or over 10% if under age of 65.

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MargaretL · ‎June 6, 2019

No, you cannot, unfortunately. Only the owner of the retirement account can take this exception. In other words, you husband must be disabled if he takes his retirement out. It, unfortunately, is not allowed otherwise, even though you may be filing jointly.

However, did you pay any medical expenses with the distribution money? The amount of unreimbursed medical expenses can qualify for 10% penalty exception... amount must be over 7.5 % AGI or over 10% if under age of 65.