https://ttlc.intuit.com/community/retirement/discussion/i-needed-to-withdraw-my-401k-to-help-with-my-bills-from-paying-for-my-medicine-and-doctor-bills-and/01/3442750#M229613 Wed, 28 Jan 2026 06:19:35 GMT barbaragailmaynor 2026-01-28T06:19:35Z https://ttlc.intuit.com/community/retirement/discussion/i-needed-to-withdraw-my-401k-to-help-with-my-bills-from-paying-for-my-medicine-and-doctor-bills-and/01/3442750#M229613 Wed, 28 Jan 2026 06:19:35 GMT https://ttlc.intuit.com/community/retirement/discussion/i-needed-to-withdraw-my-401k-to-help-with-my-bills-from-paying-for-my-medicine-and-doctor-bills-and/01/3442750#M229613 barbaragailmaynor 2026-01-28T06:19:35Z https://ttlc.intuit.com/community/retirement/discussion/re-i-needed-to-withdraw-my-401k-to-help-with-my-bills-from-paying-for-my-medicine-and-doctor-bil/01/3442765#M229614 <P>Withdrawing from your 401(k) account to pay for medical bills is not an exception to the early withdrawal penalty.</P> <P>&nbsp;</P> <P>However, this year, you can withdraw once up to $1,000 for personal emergency and be excepted for the early withdrawal penalty.</P> <P>&nbsp;</P> <P>Please read this <A href="https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/exceptions-penalty-early-withdrawal-401-k/L9NbxLuiL_US_en_US" target="_blank">TurboTax Help article</A> for more information.</P> Wed, 29 Jan 2025 18:48:54 GMT https://ttlc.intuit.com/community/retirement/discussion/re-i-needed-to-withdraw-my-401k-to-help-with-my-bills-from-paying-for-my-medicine-and-doctor-bil/01/3442765#M229614 MinhT1 2025-01-29T18:48:54Z https://ttlc.intuit.com/community/retirement/discussion/re-i-needed-to-withdraw-my-401k-to-help-with-my-bills-from-paying-for-my-medicine-and-doctor-bills/01/3442936#M229625 <P>1. If you are still employed, you must ask your employer for a hardship withdrawal. &nbsp;Your employer is allowed to decide whether or not they will allow hardship withdrawals and what qualifies as a hardship, not all employers allow this.</P> <P>&nbsp;</P> <P>2. If you are still employed, consider taking a loan from your 401k instead. &nbsp;You can borrow up to half your funds, with a 5 year repayment (payments are payroll deductions). &nbsp; Loans are not taxable unless you stop making payments.</P> <P>&nbsp;</P> <P>3. If you are no longer employed with the plan sponsor you can withdraw at any time for any reason. &nbsp;However, all withdrawals are subject to regular income tax.&nbsp;</P> <P>&nbsp;</P> <P>4. If you are under age 59-1/2, withdrawals are subject to a 10% penalty for early withdrawal on top of normal income tax.</P> <P>&nbsp;</P> <P>5. There are a few exceptions to the early withdrawal penalty. &nbsp;The ones that might apply to you are an exception for up to $1000 for any fiancial emergency, and an exception for medical expenses if your medical expenses are more than 7.5% of your adjusted gross income.</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> Wed, 29 Jan 2025 19:45:08 GMT https://ttlc.intuit.com/community/retirement/discussion/re-i-needed-to-withdraw-my-401k-to-help-with-my-bills-from-paying-for-my-medicine-and-doctor-bills/01/3442936#M229625 Opus 17 2025-01-29T19:45:08Z