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?

[katonyajohnson]

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

[MinhT · Accepted solution]

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.

[brettrothwell]

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