All of my 401K early withdraw was from matching employer contributions. Is it really still subject to all the taxes and fines assessed, or is some, or all of exempt?

[vance]

The entire amount of my 401K early withdraw (cashed out, not reinvested) was from matching employer contribution and market earnings; every dollar that I had contributed had already been removed through previous early withdraws. After reading your help section of "Qualifying Retirement and Pension Benefits" I have to ask: Is this withdraw is really still subject to all the taxes and fines assessed, or is some, or all of exempt?

[MargaretL · Accepted solution]

Unfortunately, the entire distribution is taxable and, subject to additional 10% penalry if it is also an early withdrawal.  

There are a few, very specific exceptions (I'm inlcuding a link that lists them) to an early withdrawal.  Turbo Tax will ask you if you qualify for any of them, after the Form 1099-R is entered in Turbo Tax.  If you don't qualify for them, the entire amount is taxable and subject to an additional penalty, unfortunately.

https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Tax-on-Early-Distr...