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do you pay penalty on 401K distribution for hardship If no where do you enter in Basic

DiDi
Level 2

Do you pay penalty on 401K distribution for hardship and if NO where do you enter in Basic

 

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7 Replies 7
Just-Lisa-Now-
Level 15
Level 15

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.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
DiDi
Level 2

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

 

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DiDi
Level 2

They NOT I told them no penalty

 

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Terry53029
Level 11
Level 11

There are some exceptions to the 10% penalty. What was the distribution used for 

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DiDi
Level 2

hardship

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Just-Lisa-Now-
Level 15
Level 15

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.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
DiDi
Level 2

Thank You