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onehunter91
January 31, 2025
Question

Does purchasing a new heat pump for your house qualify as emergency personal use and a tax break for early withdrawal of retirement?

  • January 31, 2025
  • 1 reply
  • 0 views
Our air conditioner/heat pump went out in the middle of summer last year and we had to make an early withdrawal from retirement to buy a new unit. The temperatures at the time made living conditions too uncomfortable to keep our children in without being able to stay cool.

    1 reply

    T
    ThomasM125
    January 31, 2025

    Per IRS notice 2024-55,  "Any other necessary personal expenses" is one qualification for exemption from the 10% penalty on early withdrawals from a pension plan. The exemption is allowed for up to $1,000 in withdrawals per year. It would be up to you to interpret the meaning of "other necessary personal expenses".

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