Retirement tax questions

You might be confused because you have heard that folks can use money from an IRA for a down payment on a home without paying an early withdrawal penalty.  That has never been true for a 401k--an early withdrawal from a 401k for a down payment would still incur a penalty.

But you are not making an early withdrawal since you are over 59 1/2, so no worries about a penalty.  But any money you take out of the 401k will be taxable income, no matter what you use it for.  You will receive a 1099R in January which must be entered on your next tax return.

**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.**

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