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New Member
posted Mar 3, 2025 10:08:14 PM

Is there a tax exemption I can claim since I took some of my retirement because I was out of work to be with my mother as she was dying?

Will I still be penalized for taking some of my Retirement early?

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1 Best answer
Level 15
Mar 3, 2025 10:26:45 PM

Withdrawals from pre-tax retirement plans are always taxable.  There is a 10% penalty if you are under age 59-1/2.  

 

Possible exceptions to the penalty are listed here.

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

 

Unless you paid substantial health insurance premiums while unemployed, probably the only exception you would qualify for is the penalty exception on a $1000 withdrawal for emergency family expenses.   The rest of your withdrawal would be subject to the penalty as well as the income tax. 

1 Replies
Level 15
Mar 3, 2025 10:26:45 PM

Withdrawals from pre-tax retirement plans are always taxable.  There is a 10% penalty if you are under age 59-1/2.  

 

Possible exceptions to the penalty are listed here.

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

 

Unless you paid substantial health insurance premiums while unemployed, probably the only exception you would qualify for is the penalty exception on a $1000 withdrawal for emergency family expenses.   The rest of your withdrawal would be subject to the penalty as well as the income tax.