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    chavezarnold's Avatar
    chavezarnold Posts: 1, Reputation: 1
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    #1

    Nov 2, 2007, 01:44 AM
    401k early withdrawl w/medical expenses
    This year, I took out a 401k hardship withdrawal of $3,000 and I'm aware of the income taxes and the 10% penalty fee for the federal return. With medical expenses (eye surgery) greater then 7.5% of my AGI, will the 10% penalty fee be waived and what form would I need to fill out to have this done? CA resident with an AGI around 44k. I haven't received any of my tax forms yet, as I'm just trying to get a jump on my taxes before the end of the year comes around. Any help would be appreciated.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Nov 2, 2007, 01:07 PM
    If the entire $3,000 exeeds the 7.5% AGI amount, then the 10% Early Withdrawal Penalty will be waived. You need to file Form 5329 to claim that waiver.

    The 2007 tax forms have not yet been released.
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