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New Member
posted Jun 5, 2019 4:44:17 PM

I was unemployed for 8 months in 2017. Used 401K distributions for bills (could not take 401k loans). Is there any way of getting out of early distribution penalties?

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1 Replies
Intuit Alumni
Jun 5, 2019 4:44:18 PM

It's possible, but your situation would have to meet one of the IRS exceptions, since unemployment on its own isn’t an exception.  Please see the TurboTax FAQs I've attached below, and IRS Retirement Topic - Exceptions to Tax on Early Distributions, to see if you might qualify under one of the listed exceptions.

What are the exceptions to the penalty for an early withdrawal from my 401(k)?

https://ttlc.intuit.com/replies/5881082

Can I make a hardship withdrawal from my 401(k)?

https://ttlc.intuit.com/replies/3302066