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New Member
posted Feb 25, 2024 12:20:56 PM

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?

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2 Replies
Level 15
Feb 25, 2024 12:22:10 PM

No.

Level 15
Feb 25, 2024 12:23:36 PM

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.