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posted Mar 17, 2020 12:45:18 PM

early withdrawal

I live in a community property state (Texas); so I am not 59 1/2 but my spouse is and I rolled over half of my former employer's 401K and my spouse used half for a vehicle purchase . . . would that save me or qualify to eliminate the early withdrawal penalty?

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1 Replies
Expert Alumni
Mar 17, 2020 1:26:31 PM

The purchase of a vehicle is not an exception to reduce the 10% early withdrawal penalty. 

 

See Retirement Topics - Exceptions to Tax on Early Distributions