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