If you are under 59 1/2 you will pay an early withdrawal penalty of 10%, plus ordinary income tax within your tax bracket for the 4011k withdrawal. Taking money out of a 401k for a down payment is not an exception to the 10% penalty. It is an expensive way to make a down payment.
In late January/ early February you will get a 1099R for the money you took out of the retirement fund.
To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
