I had to take 17k for a hardship withdraw on my 401k. Will I have to pay federal taxes on this?
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I had to take 17k for a hardship withdraw on my 401k. Will I have to pay federal taxes on this?
Yes, you will be subject to normal state and federal income taxes on the $17,000.
Further, unless your distribution meet one of the exceptions, you will also have to pay a 10% Early Withdrawal Penalty. The 10% penalty must be paid even if all your deductions would otherwise completely offet your other income. It is a rather punitive tax.
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