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.

 

 

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