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esmith4683
New Member

Early withdrawal from 401k to pay for mothers funeral can i put that down under the situations that may lower the penalty cost.

My mother passed away and i didnt have enough money to bury her so I cashed out my 401k early. i paid federal and state tax when i cashed out but was wondering if that counts as death under the exemptions.
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Howard1948
Level 7

Early withdrawal from 401k to pay for mothers funeral can i put that down under the situations that may lower the penalty cost.

Unfortunately, funeral expenses are not one of the exceptions to the early withdrawal penalty.

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3 Replies
Howard1948
Level 7

Early withdrawal from 401k to pay for mothers funeral can i put that down under the situations that may lower the penalty cost.

Unfortunately, funeral expenses are not one of the exceptions to the early withdrawal penalty.

View solution in original post

dar90256
New Member

Early withdrawal from 401k to pay for mothers funeral can i put that down under the situations that may lower the penalty cost.

Hardship withdrawals are allowed to: Purchase or repair a primary home; Pay education tuition, room and board, and fees for the next 12 months for you, your spouse, children, and other dependents; Prevent eviction or foreclosure on your primary residence; Address severe financial hardship; Pay for unreimbursed medical expenses for you, your spouse, children and other dependents; Pay for funeral expenses for immediate family members—parents, spouse, children, and other dependents. - See more at: <a rel="nofollow" target="_blank" href="http://www.finra.org/investors/401k-hardship-withdrawals%e2%80%94understand-tax-bite-and-long-term-c...>
VolvoGirl
Level 15

Early withdrawal from 401k to pay for mothers funeral can i put that down under the situations that may lower the penalty cost.

Those are for being able to take a withdrawal from the 401k.  But keep reading down.  There are only a couple exceptions to the 10% early withdrawal penalty on your tax return.
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