Skip to main content
January 24, 2025
Question

Trying to put what we took out of our 401k to avoid eviction. Tried putting it under “distributions for eligible emergency expenses” flags for more than 1,000 it was 5000

  • January 24, 2025
  • 1 reply
  • 0 views
No text available

    1 reply

    DoninGA
    Employee
    January 24, 2025

    A maximum of $1,000 is allowed to be an exception to the 10% early distribution penalty when the withdrawal was for an emergency.

     

    https://www.irs.gov/irb/2024-28_IRB#NOT-2024-55

     

    Q. A-5: Is there a dollar limitation on the amount that an individual may treat as an emergency personal expense distribution under section 72(t)(2)(I)(iii)?

    A. A-5: The amount that may be treated as an emergency personal expense distribution by an individual in any calendar year shall not exceed the lesser of $1,000 or an amount equal to the excess of --

    (a) the individual’s total nonforfeitable accrued benefit under the plan (in the case of an IRA, the individual’s total interest in the IRA), determined as of the date of each such distribution, over

    (b) $1,000.