Took 401k distributions in 2021 to prevent foreclosure...due to not working continually from ongoing effects of Covid. Does that qualify for the tax exemption?

[DoninGA]

There are no Covid-19 exceptions on a 2021 withdrawal from a 401(k) account.

If you are under the age for an exception to the 10% early withdrawal penalty then the penalty will be entered on your Form 1040 as a tax liability.

The taxable amount of the withdrawal is entered on your tax return as ordinary income and taxed at your current tax rate.