Do I need to pay additional taxes on a 401k withdrawal due to a spouse being permanently disabled
It says permanently disabled reason is excusable but does it have to be for yourself? Can it be for a spouse?
011267
1 Replies
SabrinaD2
Expert Alumni
Jan 21, 2025 4:27:00 PM
The IRS allows the penalty exception only if the account holder (you) is permanently disabled. Unfortunately, a spouse’s disability doesn’t qualify for this exception. See IRS 401(k) Withdrawal Rules and Disability topic.
Regardless of the penalty exception, you’ll still owe regular income taxes on the withdrawal.
If you’re using the funds for medical expenses, you might qualify for another exception if those expenses exceed 7.5% of your adjusted gross income (AGI).
TurboTax Can Help:
TurboTax will guide you step-by-step to determine if any exceptions apply to your situation, including medical expense deductions.