I had an early 401k withdrawal being used to pay for medical expenses. Why does it appear to be showing as still fully taxable when it wasn't on previous tax years?

I had a couple early 401k withdrawals, the largest one was under a hardship and all used for medical expenses. Looks like still being 100% taxed when I wasn't in previous years.

1006

1 Best answer

Level 15

Jun 6, 2019 5:45:49 AM

It is (and always has been) fully taxable, but may be exempt from the 10% penalty.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

Level 15

Jun 6, 2019 5:45:49 AM

It is (and always has been) fully taxable, but may be exempt from the 10% penalty.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

New Member

Jun 6, 2019 5:45:50 AM

Thanks for your help. Now I understand it. I appreciate your time.

Why sign in to the Community?

I had an early 401k withdrawal being used to pay for medical expenses. Why does it appear to be showing as still fully taxable when it wasn't on previous tax years?