Levertki1 t1_j6o3wz8 wrote on January 31, 2023 at 6:29 PM

Reply to comment by nothlit in Claiming refund for 401(k) withdrawal penalty by Mega_Fry

Principal residence is an exception. Correct?

Number 2 on last irs section you posted.

nothlit t1_j6o4sxe wrote on January 31, 2023 at 6:34 PM

I'm not seeing the phrase "principal residence" anywhere on that page.

If you look at the table under the row for "homebuyers" it clearly says "no" for qualified plans (401k, etc.) and "yes" for IRA.

Levertki1 t1_j6o6hng wrote on January 31, 2023 at 6:45 PM

Last one you posted before you changed it.

nothlit t1_j6o770h wrote on January 31, 2023 at 6:49 PM

This? https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-hardship-distributions

That just means you're allowed to take the withdrawal for that reason. It doesn't mean it's exempt from the 10% penalty.

> Hardship distributions are subject to income taxes (unless they consist of Roth contributions). They may also be subject to a 10% additional tax on early distributions.