Early distribution exceptions

[LCP]

Teacher brings in a 1099R with a code 1. He says ING told him he would be able to avoid the 10% penalty because his house was in threat of foreclosure. Sure enough, their paperwork listed that as an available exception.

I can't find it in TheTaxBook though...... any thoughts?

[dkss]

are you sure the papers weren't talking about the eminent foreclosure being an allowed exception for a hardship withdrawal from the plan, not the avoidance of the 10% penalty?

[LCP]

That was in the back of my mind having once administered a 401k plan and being aware that there were different exceptions to different issues and plans.

I just was hoping something had changed since then.

[Davc]

That was in the back of my mind having once administered a 401k plan and being aware that there were different exceptions to different issues and plans.

I just was hoping something had changed since then.

A lot's changed, just not that.