Kiplinger recently listed 19 tax actions that may get you audited by the IRS. Many will likely not apply to average taxpayers, but this one is pretty common, especially when people change jobs.
Beware‼️
Keep in mind, you may escape the 10% penalty, but the distribution is still taxable income.
Taking an early payout from an IRA or 401(k) account
The IRS wants to be sure that owners of traditional IRAs and participants in 401(k)s and other workplace retirement plans are properly reporting and paying tax on distributions. Special attention is being given to payouts before age 59½, which, unless an exception applies, are subject to a 10% penalty on top of the regular income tax. The IRS knows that a substantial number of filers make errors on their income tax returns with respect to retirement payouts, with most of the mistakes coming from taxpayers who don’t qualify for an exception to the 10% additional tax on early distributions. The IRS is looking at this issue closely.
The IRS has a chart listing withdrawals taken before the age of 59½ that escape the 10% penalty, such as payouts made to cover very large medical costs, total and permanent disability of the account owner, or a series of substantially equal payments that run for five years or until age 59½, whichever is later. Last year’s SECURE 2.0 retirement savings legislation added even more exceptions.
Kiplinger
QUINNSCOMMENTARY 
I recently read how much money was withdrawn from 401-k plans last year nationally. I guess there are “emergencies”, and then again, there are emergencies. It’s unfortunate so many have felt the need to this. Remember Charlie Munger: “To allow the magic of compounding to work, never interrupt it!”
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