Does a withdrawal from my 401K qualify for a natural disaster when used to pay for a new car after mine was totaled in an accident?

barbaradaziens · ‎February 25, 2024

DoninGA · ‎February 25, 2024

No.

xmasbaby0 · ‎February 25, 2024

No. A natural disaster would include a hurricane, flood, wildfire, etc. not a car accident. Sorry. If you under 59 1/2 you are subject to the 10% early withdrawal penalty and ordinary income tax on the money you took from the 401k.

To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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Does a withdrawal from my 401K qualify for a natural disaster when used to pay for a new car after mine was totaled in an accident?