If you took money out of a 401k before you were 59 1/2, you will owe the 10% early withdrawal penalty as well as ordinary tax on the withdrawal. Using money from a 401k for a down payment on a house is not an exception to the early withdrawal penalty. Taking money from a traditional IRA for a down payment would have been different. You will receive a 1099R in late January/early February for the distribution from the 401k, which must be entered on your tax return.
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