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Question

Does being let go from your job count as a qualified disaster for 401k withdrawal?

Forum|Forum|1 year ago
February 1, 2025
1 reply
0 views

No text available

No, being let go from a job does not count as a disaster.

Per TurboTax Help, "a qualified disaster is one that the president declares as a major disaster (a federally declared disaster). ‌These federally declared disasters are listed annually on FEMAs website and their FEMA number will contain the capital letters “DR”."

However, this sounds like it may qualify as an "emergency." An emergency will allow you to make a withdrawal, still subject to tax, but without the 10% early withdrawal penalty. You can take one financial withdrawal emergency per year, not to exceed $1,000.