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

[esmith4683]

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.

[Howard1948 · Accepted solution]

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

[dar90256]

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]

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.