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February 2, 2022
Question

401K hardship withdrawal for eviction

  • February 2, 2022
  • 1 reply
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Hi!  I took a $3,000 hardship withdrawal from my 401K to avoid eviction last year.  I'm reading that I could possibly avoid the 10% fee since it was an eviction?  Is that true?  If so, do I put it in the "other reason" box in the Personal Deduction checker?  Any help would be great!  Thanks!

1 reply

February 2, 2022

It is true that you are allowed what is called a hardship distribution if you're dealing with something like eviction.  However, hardship distributions only avoid the 10% penalty if you are over age 59 and a half.

 

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