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zemanek8
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Do I get taxed if I make a withdrawal from my 401k to pay for my medical bills?

 
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2 Replies

Do I get taxed if I make a withdrawal from my 401k to pay for my medical bills?

Yes.  But if you are under 59 1/2  you might avoid the 10% Early Withdrawal Penalty for Medical Expenses.  If you take a Withdrawal it is taxable on your return and may push you into a higher tax bracket and more income can reduce or eliminate some credits you may qualify for.  So be careful.

Do I get taxed if I make a withdrawal from my 401k to pay for my medical bills?

The amount of unreimbursed medical expenses in excess of 7.5% of your AGI paid by your early withdrawal can be excluded from the 10% early withdrawal penalty but not from ordinary income taxes.
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