Question

Will I get penalized if I used an early withdrawal for a home purchase, medical expenses, and expenses due to a permanent disabilty.

Forum|Forum|1 year ago
March 11, 2025
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Can I use and early withdrawal towards money for gas to travel to my doctors due to a permanent disabilty?

Medical expenses (unreimbursed expenses over 7.5% of AGI) and the total and permanent disability of the 401k participant/IRA owner are exceptions to the 10% early withdrawal penalty. See Retirement Topics - Exceptions to Tax on Early Distributions

Qualified first-time homebuyers, up to $10,000 is an exception for IRA owners, but not 401k participants.

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