Do I have to fill out a W-4 for a hardship withdrawal from my 401(k)?

by Colleen S. Krcelich, CPA | Nov 30, 2017

I took a hardship withdrawal of $2,700 out of my 401(k) to pay off a funeral. I indicated “no” to the question, “Do you want to withhold the 10 percent additional income tax?” Does this mean I need to fill out a W-4?

There is no need for you to fill out a W-4, as this was a one-time withdrawal. You will only need a W-4 if there are going to be consistent withdrawals. 

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Colleen S. Krcelich, CPA, is an adjunct professor at Northampton Community College in Bethlehem, Pa. 

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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