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Retirement tax questions
When you take money from a traditional IRA there is not a 10% early withdrawal penalty if you are a first time home buyer under the age of 59 1/2. There is no such exception to the early withdrawal penalty for a 401k. You are subject to a 10% early withdrawal penalty and ordinary income tax on the distribution from your 401k--making it an expensive way to make your down payment. Sorry.
You should have a 1099R for this.
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.**
‎July 15, 2020
9:35 PM
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