I just sold my mutual funds because I was in financial hardship. Is the money I got taxable?

Answer 1

The taxable part would be any profit you made. If you sold them for more than you paid, then that is a capital gain and is taxable in the year received. If you lost money, then that loss is deductible against your other income, with limits.

Answer 2

If they were not in a tax sheltered retirement plan they are taxable. You will recieve a 1099-b from the company that will tell you how much is taxable.