Where do I enter exception to early hardship 401k withdrawal I had to satisfy an eviction expense?

[MinhT1]

There is no exception to the early withdrawal penalty for a hardship withdrawal from a 401(k) account.

There is however an exception for an emergency withdrawal of up to $1,000 once a year.

Please read this TurboTax Help article.

In TurboTax Online, please follow these steps:

1. After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue 
2. Follow the interview until you arrive at the page titled Did you use your IRA to pay for any of these expenses?
3. Enter the amount of your amount up to $1,000 in the box next to Emergency Personal Expense and click Continue
4. Your early withdrawal penalty will be waived.

Edited 01/28/2025 | 7:13 AM PST

[Opus 17]

That's not an exception.

While you may be allowed by your plan to take a hardship withdrawal, all 401k withdrawals are always subject to regular income tax, plus a 10% penalty for early withdrawal if you are under age 59-1/2.

There are a few exceptions to the 10% penalty but the only one that probably applies to you is you can exclude the penalty on up to $1000 per year for a personal financial emergency.  If you withdrew more than $1000, you will owe the penalty on the rest.  See the list of exceptions here.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-o...

When you enter the 1099-R for the withdrawal, you should be asked about exceptions you might qualify for. 

[peggyfoth]

Hello 

I made a withdrawal from my 401K to assist my son with the purchase of a home.   I had the state and Federal taxes withheld.   How do I indicate on my Turbo tax form that I am over 591/2 so the penalty is not added?

[Opus 17]

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@peggyfoth wrote:

Hello 

I made a withdrawal from my 401K to assist my son with the purchase of a home.   I had the state and Federal taxes withheld.   How do I indicate on my Turbo tax form that I am over 591/2 so the penalty is not added?

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Is your date of birth entered correctly in the program? Turbotax should know automatically.  If you turned 59-1/2 during the year, you may need to complete all the steps in the interview, don't just enter the 1099 and then exit and go somewhere else.  At the end of the interview section there is a page that says "let's look for ways to avoid the penalty" and if you turned 591/2 in the middle of the year, there should be a check box to indicate you withdrew the money after that date.