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A withdrawal from a 401(k) and you are under the age of 59 1/2 is not eligible for the 10% early withdrawal exclusion for a first time home purchase.  That is only available if the withdrawal is from an IRA and only on the first $10,000 withdrawn.

 

The taxable amount of the 401(k) withdrawal is entered on a federal tax return as ordinary income.  You will receive a Form 1099-R for the withdrawal in January of the year following the withdrawal.  The 1099-R is entered on the federal tax return as received.