https://ttlc.intuit.com/community/retirement/discussion/if-i-was-laid-off-by-my-employer-in-2023-and-had-to-make-an-early-withdraw-from-my-retirement-due-to/01/3164211#M209700 Wed, 11 Feb 2026 04:35:29 GMT Lori-Kolb 2026-02-11T04:35:29Z https://ttlc.intuit.com/community/retirement/discussion/if-i-was-laid-off-by-my-employer-in-2023-and-had-to-make-an-early-withdraw-from-my-retirement-due-to/01/3164211#M209700 Wed, 11 Feb 2026 04:35:29 GMT https://ttlc.intuit.com/community/retirement/discussion/if-i-was-laid-off-by-my-employer-in-2023-and-had-to-make-an-early-withdraw-from-my-retirement-due-to/01/3164211#M209700 Lori-Kolb 2026-02-11T04:35:29Z https://ttlc.intuit.com/community/retirement/discussion/re-if-i-was-laid-off-by-my-employer-in-2023-and-had-to-make-an-early-withdraw-from-my-retirement-due/01/3164223#M209701 <P>If you were under the age of 59 1/2 at the time of the withdrawal there will be a 10% early distribution penalty assessed on your federal tax return and entered on the tax return as a tax liability.&nbsp; Any federal income taxes withheld on the distribution and reported in box 4 of the Form 1099-R will be entered on your tax return as a tax payment.</P> Sat, 03 Feb 2024 23:50:45 GMT https://ttlc.intuit.com/community/retirement/discussion/re-if-i-was-laid-off-by-my-employer-in-2023-and-had-to-make-an-early-withdraw-from-my-retirement-due/01/3164223#M209701 DoninGA 2024-02-03T23:50:45Z https://ttlc.intuit.com/community/retirement/discussion/re-if-i-was-laid-off-by-my-employer-in-2023-and-had-to-make-an-early-withdraw-from-my-retirement-due/01/3164236#M209703 <P>While the age limit for the 10% penalty for an IRA is 59-1/2, the age limit for a qualified workplace plan (401k, 403b) is age 55. &nbsp;If you were separated from service in the year you turned 55 or older, you are exempt from the 10% penalty for early withdrawal.</P> <P>&nbsp;</P> <P>There is no general exception to the 10% penalty for being laid off. &nbsp;However, if you withdrew money from an IRA to pay for medical insurance while you were laid off, the part of the withdrawal used for those premiums is exempt from the 10% penalty. &nbsp;(But this applies to IRAs only, not to workplace plans.)</P> <P>&nbsp;</P> <P>Other exceptions are listed here.</P> <P><A href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions" target="_blank">https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions</A></P> Sat, 03 Feb 2024 23:59:42 GMT https://ttlc.intuit.com/community/retirement/discussion/re-if-i-was-laid-off-by-my-employer-in-2023-and-had-to-make-an-early-withdraw-from-my-retirement-due/01/3164236#M209703 Opus 17 2024-02-03T23:59:42Z