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January 29, 2025
Question

If I was a victim of a crime that unable me to work, but I have not gotten on disability yet, could I lower my tax bill from getting retirement distributions early?

  • January 29, 2025
  • 1 reply
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I used the withdrawals to live on and provide for my children.

    1 reply

    January 29, 2025

    It depends. If you were a victim of domestic violence in 2024 you may qualify for the exception to the early withdrawal penalty. Specifically, this is relief from the 10% penalty for an early withdrawal, not income tax.

     

    Here is a helpful article explaining exceptions to early withdrawals: An Early Withdrawal From Your 401(k): Understanding the Consequences