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Retirement tax questions
Sorry. IRAs and 401(k)s are controlled by different sections of the tax law and have different rules, even though they have broadly similar purposes. The exception to the 10% penalty for a first time home buyer applies to an IRA but not a 401(k). If you are within 60 days of the withdrawal, you could re-deposit the money into the 401(k), then do a partial rollover of the 401(k) money to an IRA and withdraw it from the IRA. But taking the money directly from the 401(k) is not exempt from the 10% early withdrawal penalty.
‎January 21, 2022
4:53 AM