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What are the valid "other" reasons I can claim early withdrawal on my 401k?

I took out my 401k as an early withdrawal. Was taxed on it at the time. I used it money to pay some bills off as I was getting seriously in debt. I put in my 1099-r forms and am now seeing my estimated refund drop from around 1k to 540$. I didn't take it out as a hardship withdrawal either. Can I put in the "other reasons" box the amount I took out?

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2 Replies

What are the valid "other" reasons I can claim early withdrawal on my 401k?

Apart from the hardship withdrawal, the other would be any of the ones listed in the TurboTax FAQ below.  Please select 'see entire answer' to read the content.

https://ttlc.intuit.com/replies/5881082

dmertz
Level 15

What are the valid "other" reasons I can claim early withdrawal on my 401k?

To be clear, general "hardship" and using the money to pay bills are not an exceptions to the early-distribution penalty.

See the instructions for Form 5329 for the permissible Other reasons that qualify as an exception to the early-distribution penalty:  <a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i5329#idm140449226340160">https://www.irs.gov/instructions/i5329#id...>
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