I have just been laid off. Can I use my 401(k) for living expenses now and report it as income next year?

Personal Finance, 401(k)
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March 2017
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Unfortunately, the answer is "no". Income taken from a retirement plan will need to be reported as income for the year it was distributed. Depending on your age, there are a few things you should consider. First, there could be a 10% penalty for early withdrawals from you 401(k) plan. However, if you are using part of your distributions to cover the cost of health care premiums or unreimbursed medical expenses, the penalty can be waived.

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