turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

macneil84
New Member

May I use as a IRA distribution? $3100 for expenses during 3 mo. FMLA/rcvd Short term disability 1 month and not enough money to pay bills including mortgage.

Took out 3100 from 401 hardship withdrawal that was approved.
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
MindyB
Employee Tax Expert

May I use as a IRA distribution? $3100 for expenses during 3 mo. FMLA/rcvd Short term disability 1 month and not enough money to pay bills including mortgage.

Although your 401(k) plan approved the hardship withdrawal, the withdrawal is still subject to tax.  It could also be subject to penalties, if you don't qualify for an exception.  Here is information on exceptions: What are the exceptions to the penalty for an early withdrawal from my 401(k)? The scenario you described sounds like it would qualify for the financial emergency exception, which is limited to $1,000 per year.

 

To report the withdrawal, here's how to do this in TurboTax Online:

 

  • Navigate to Federal > Wages & Income > IRA, 401(k), Pension Plan Withdrawals (1099-R) Add/Edit
  • Your withdrawal will be shown in a summary on a screen that says "Here's your 1099-R info"
  • Choose "Continue"
  • Continue through the interview until you arrive at a screen that says "Did you use your IRA to pay for any of these expenses?"
  • If you qualified for an exception to the penalty, enter the information here. 

 

Here is an article you may find helpful: Can I make a hardship withdrawal from my 401(k)?

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question