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401K 10% Exemption

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ruairi

Junior Member
What is the name of your state (only U.S. law)? Arkansas

Hello,

I had a question on whether I qualified for an exemption to the 10% 401K early withdrawal penalty on my income tax return. I left a company in August of 2013 and was paid out my 401K in January of 2014. I am a part-time student but pay for school out of pocket by working. I want to know if I can claim the exemption to the penalty. Technically, I didn't withdraw the money for 401K, but I definitely had more than $700 dollars (the amount withdrawn) in education expenses last year.

What would your opinions be?

Thanks in advance for any help you can provide!
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? Arkansas

Hello,

I had a question on whether I qualified for an exemption to the 10% 401K early withdrawal penalty on my income tax return. I left a company in August of 2013 and was paid out my 401K in January of 2014. I am a part-time student but pay for school out of pocket by working. I want to know if I can claim the exemption to the penalty. Technically, I didn't withdraw the money for 401K, but I definitely had more than $700 dollars (the amount withdrawn) in education expenses last year.

What would your opinions be?

Thanks in advance for any help you can provide!
The exemption for education expenses only applies to monies withdrawn from IRA's. It does not apply to 401ks.
 

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