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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.**
‎June 1, 2019
12:12 PM