Do you pay penalty on 401K distribution for hardship and if NO where do you enter in Basic
You can use Hardship as a reason to get them to let you make an early withdrawal from the account, its still taxable and subject to penalty.
They used it to purchase first time home-They allowed them to take the withdrawl told them it would be hardship and there would be no penalty
They NOT I told them no penalty
There are some exceptions to the 10% penalty. What was the distribution used for
The first time home buyer exception to penalty is on the first $10,000 (so $1000 penalty exception) and its only for IRA,s not 401Ks.