I have already paid the add'l penalty for the early withdrawal. Because I was injured and lost my job, I needed the 401K money for expenses as I was unable to work. Can this qualify for the emergency expenses deduction of $1000?
Yes. The IRS defines “emergency personal expense" as an unforeseeable or immediate financial need relating to necessary personal or family emergency expenses. (Section 115 of the Secure 2.0 Act)
An emergency will allow you to make a withdrawal, still subject to tax, but without the 10% early withdrawal penalty. You can take one financial withdrawal emergency per year, not to exceed $1,000.
Even if I'm no longer employer by that company? I left in 2023. I took the entire 401K amount in one final distribution. Thanx in advance for the help...