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What if I had to take funds out of my 401K due to disaster from Hurricane Harvey? Would the penalty be excluded? Have it been confirmed yet?

Should the penalty for taking funds from my 401K be excluded due to Hurricane Harvey?
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MinhT
Expert Alumni

What if I had to take funds out of my 401K due to disaster from Hurricane Harvey? Would the penalty be excluded? Have it been confirmed yet?

Yes, you may be exempted from the early withdrawal penalty if you were a hurricane and you withdrew from your 401(k) within certain dates.

In the 1099-R interview, on the Relief for Hurricane distributions page (see attached screenshot). please click on certain dates to verify if your distribution qualifies for the exemption, and if it does, click Yes.

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2 Replies
MinhT
Expert Alumni

What if I had to take funds out of my 401K due to disaster from Hurricane Harvey? Would the penalty be excluded? Have it been confirmed yet?

Yes, you may be exempted from the early withdrawal penalty if you were a hurricane and you withdrew from your 401(k) within certain dates.

In the 1099-R interview, on the Relief for Hurricane distributions page (see attached screenshot). please click on certain dates to verify if your distribution qualifies for the exemption, and if it does, click Yes.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

What if I had to take funds out of my 401K due to disaster from Hurricane Harvey? Would the penalty be excluded? Have it been confirmed yet?

After clicking yes, it notes that the IRS has not issued the document to waive the penalty.
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