Question

I didn't work last year due to illness. I took 21k from my retirement to get through the year. Isn't there an exemption that I can get for sick and unemployed? Thank you.

Forum|Forum|6 years ago
April 10, 2019
1 reply
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Please help!

You should have received a 1099-R for your withdrawal from your retirement plan. You and your custodian should have formally agreed to a "hardship" withdrawal before you made the withdrawal. The TurboTax FAQ below explains about hardship withdrawal from a 401K. Taking an early withdrawal most often incurs a 10% penalty. Hopefully you'll find the information you need in the FAQ linked below.

https://ttlc.intuit.com/questions/1901285-can-i-make-a-hardship-withdrawal-from-my-401-k

The FAQ below explains the allowable exceptions:

https://ttlc.intuit.com/questions/3701254-what-are-the-exceptions-to-the-penalty-for-an-early-withdrawal-from-my-401-k

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***