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Employee
June 1, 2019
Solved

Question about 401k, withdrew $35000 paid $7000 in taxes so $28000 left to pay bills because wife lost job. what amount do i put in box that ask about other reason?

  • June 1, 2019
  • 1 reply
  • 0 views
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Best answer by SweetieJean

Paying bills is not an exception to the 10% early withdrawal penalty, except as indicated for Medical here:

https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Tax-on-Early-Distr...

1 reply

Employee
June 1, 2019

Paying bills is not an exception to the 10% early withdrawal penalty, except as indicated for Medical here:

https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Tax-on-Early-Distr...

TIMMY69Author
Employee
June 1, 2019
On the Turbotax app there is a choice for using it for other reasons. Medical is listed as a specific line item and the money we paid towards the tax should already include the 10% penalty (as we paid 20% towards the tax penalty). What would constitute "other reasons"?