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New Member
posted Feb 10, 2025 11:57:39 AM

If my 401k was forced to be paid and not rolled over by moving companies, does that count as a reason to not have to pay additional tax on the 401k money?

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1 Replies
Expert Alumni
Feb 10, 2025 12:02:05 PM

No, there is not an exception to the early distribution penalty when the 401k is distributed due to changing companies.  

 

Take a look at the following document from the IRS to see a list of possible exceptions:

 

Retirement topics - Exceptions to tax on early distributions