401k withdrawal

Ames_k18
Ames_k18 Member Posts: 1 Newcomer
edited December 2024 in Retirement Income

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?

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  • KennethH
    KennethH FreeTaxUSA Agent Posts: 16
    Answer ✓

    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.

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