Question about 401k, withdrew $35000 paid $7000 in taxes so $28000 left to pay bills because wife lost job. what amount do i put in box that ask about other reason?

[SweetieJean · Accepted solution]

Paying bills is not an exception to the 10% early withdrawal penalty, except as indicated for Medical here:

https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Tax-on-Early-Distr...

[TIMMY69]

On the Turbotax app there is a choice for using it for other reasons. Medical is listed as a specific line item and the money we paid towards the tax should already include the 10% penalty (as we paid 20% towards the tax penalty). What would constitute "other reasons"?

[macuser_22]

"Other reasons"

- You were older than 59 1/2 when you took out the money.
- You had to split your retirement with your spouse or former spouse under a qualified domestic re order (QDRO). (This is not available for IRA accounts.)
- You took the money out of a section 457 plan that you didn't originally roll over from another reti plan that was a qualified plan.
- Money from an employer plan if you stopped working there by March 1, 1986, you have a written for the payout of the money, and you get the payments according to the schedule.
- ESOP employer stock dividends
- Money from a deferred annuity contract that was invested in before August 14, 1982.
- Money from a deferred annuity contract for a personal injury settlement.
- Money from a deferred annuity contract purchased by your employer because the employer's retir
or retirement annuity plan terminated. The employer held the annuity contract until you stopped wo - Money from a single-purchase annuity that provides equal payments (at least once a year) that be
one year from the annuity purchase.