I cashed out part of my Valic 403b for hardship reasons. Do I still pay taxes on that?

We had damage in our home from a flood that insurance did not cover. I was allowed to cash out a portion early, despite still being with the same employer and not being 59, yet.

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Yes. According to the IRS, hardship withdrawals are subject to income taxes and a 10% additional tax on early distributions. There are a few exceptions to this penalty, but property damage is not one of them. See IRS Retirement Topics - Hardship Distributions for more information.