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my 401k was more than $1,000 when I cashed it out. I took a $1,000 to fix my vehicle does that qualify for an exemption on the 10% tax?

I only withdrew it because I was leaving that job
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1 Reply
MinhT1
Employee Tax Expert

my 401k was more than $1,000 when I cashed it out. I took a $1,000 to fix my vehicle does that qualify for an exemption on the 10% tax?

If you took out $1,000, this could count as a personal emergency withdrawal and will be exempted from the early withdrawal penalty.

 

Please read this TurboTax Help article for more information. 

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