Tax Rules On Ira
March 30th, 2009
Question: Hardship withdraw from 401k tax exemptions?
On 11/2010. I withdrew 15,000.00 from my 401k to put down on a primary residence(first time homebuyer). My understanding is that IRS has certain tax rule exemption on Hardship withdrawl up to 10,000.00. Does anybody know the rule to the exemption early withdrawl from a 401k? if so, what is the IRS form that I need to fill out, what is the CA-FTB form that I need to Fill out? what I’m finding out that rule only applies to early withdraw from IRA accounts.
Answer: We had to take 2 hardship withdrawals this year for emergency home repairs.
We were allowed to not have taxes withheld from our disbursement check, and acknowledge they will be done at tax time 2012 for the 2011 filing year.
Ours were smaller, around $3500 each, and we were not informed of any tax exemption…only offered to elect to not have the taxes taken directly out of the disbursement at this time.
I hope any of that helps you, but I’m also answering so I can find this question again, so if someone has info for you about that, then it will help us out, too.
Good luck!
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