I had to cash in my 401k to put a roof on my house. Can I claim a hardship so I don't have to pay taxes on the withdrawal?
Hi,
You must pay income tax on any previously untaxed money you receive on your 401K withdrawal. You may also have to pay an additional 10% tax, unless you are age 59-1/2 or older or qualify for another exception. Putting a roof on your house does not qualify for a hardship distribution, so if you are under 59-1/2 years old you will pay the 10% penalty for early withdrawal.
If you have addtional questions, please let us know.
Thank you.
