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February 10, 2025
Question

If my 401k was forced to be paid and not rolled over by moving companies, does that count as a reason to not have to pay additional tax on the 401k money?

  • February 10, 2025
  • 1 reply
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    1 reply

    February 10, 2025

    No, there is not an exception to the early distribution penalty when the 401k is distributed due to changing companies.  

     

    Take a look at the following document from the IRS to see a list of possible exceptions:

     

    Retirement topics - Exceptions to tax on early distributions
     

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