You'll need to sign in or create an account to connect with an expert.
If you are younger than 59 1/2 and made 401(k) withdrawals in 2023 to cover bills and food while you're sick, you aren't exempt from the 10% early withdrawal penalty. Only unreimbursed medical expenses over 7.5% of your AGI would qualify for the exception.
After 12/31/2023, there's an exception for one distribution per calendar year for personal or family emergency expenses, up to the lesser of $1,000 or vested account balance over $1,000 (made after 12/31/2023).
Please read this IRS document for more information.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Kofian
New Member
freddytax
Level 1
millbemis
New Member
rpmm
New Member
mallika-bachan
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.