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?
02550
2 Replies
Critter
Level 15
Jun 14, 2020 5:17:11 PM
The distribution will be taxed however the 10% penalty should be waived if you qualify :
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.