My husband made an early withdrawal on his 401K wh...
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adancingburrito
New Member

My husband made an early withdrawal on his 401K when he was laid off suddenly so we could pay our rent, etc because he is the main breadwinner, a qualifying hardship?

 
3 Replies
Critter
Level 15

My husband made an early withdrawal on his 401K when he was laid off suddenly so we could pay our rent, etc because he is the main breadwinner, a qualifying hardship?

 
Critter
Level 15

My husband made an early withdrawal on his 401K when he was laid off suddenly so we could pay our rent, etc because he is the main breadwinner, a qualifying hardship?

The distribution will be taxed however the 10% penalty should be waived if you qualify : 

 

https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-...

dmertz
Level 15

My husband made an early withdrawal on his 401K when he was laid off suddenly so we could pay our rent, etc because he is the main breadwinner, a qualifying hardship?

General "hardship" is not an exception the the 10% early-distribution penalty.  To avoid the penalty he would have to qualify for one of the specific exceptions listed in the reference provided by Critter.

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