401(k) early withdrawal penalty
10% penalty
Can You Write Off 401 Early Withdrawal Penalty?
Short answer: Withdrawals before 59½ cost a 10% penalty plus income tax unless an exception applies, such as disability, a $5,000 birth or adoption withdrawal, or separation from work at 55+.
The penalty itself isn't deductible.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
401(k) early withdrawal penalty
10% penalty
Individuals / Personal Taxes
Withdrawals before 59½ cost a 10% penalty plus income tax unless an exception applies, such as disability, a $5,000 birth or adoption withdrawal, or separation from work at 55+.
Business justification
Withdrawals before 59½ cost a 10% penalty plus income tax unless an exception applies, such as disability, a $5,000 birth or adoption withdrawal, or separation from work at 55+. The penalty itself isn't deductible.
Category
- Personal Tax Deductions