drc845443
Employee Tax Expert

Retirement tax questions

Hi Shawn,

Unfortunately there is no relief for withdrawing funds from your 401k for use in upgrading your personal residence.

 

You do however, get to increase the cost basis of your home by the value of the upgrades, so that  you can reduce the gain on your home if/when you sell.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"