Question

Living on 401k due to temporary disability which led to unable to do current job so i was terminated Do i pay penalties

Forum|Forum|4 years ago
February 9, 2022
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TurboTax Deluxe Online

You may be able to exempt your distribution from a penalty for early withdrawal if you are disabled. To be considered disabled, you should have a document from a physician stating that you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration.

Otherwise, you will be subject to a 10% penalty for early withdrawal, assuming you are under the age of 59 and 1/2.

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