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posted Jan 24, 2025 6:29:02 PM

hey I have a question regarding my 401k. I was jobless for 3 1/2 months. I decided to take out my 401k (financial hardships), for my family to provide is this an exempt

I need to know if my reason for withdrawing the money is valid enough to avoid having to pay back on it especially since I used it all to cover my families needs

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1 Best answer
Level 15
Jan 24, 2025 6:40:00 PM

You would only get an exception for the 10% Early Withdrawal Penalty.   But I don’t think that qualifies.   The 10% Early Withdrawal Penalty is on Schedule 2 line 8 which goes to 1040 line 23.  Then you get credit for all the withholding taken out on 1040 line 25b.

 

401K penalty exceptions

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/exceptions-penalty-early-withdrawal-401-k/L9NbxLuiL_US_en_US

1 Replies
Level 15
Jan 24, 2025 6:40:00 PM

You would only get an exception for the 10% Early Withdrawal Penalty.   But I don’t think that qualifies.   The 10% Early Withdrawal Penalty is on Schedule 2 line 8 which goes to 1040 line 23.  Then you get credit for all the withholding taken out on 1040 line 25b.

 

401K penalty exceptions

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/exceptions-penalty-early-withdrawal-401-k/L9NbxLuiL_US_en_US