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Retirement tax questions
Using an early distribution from a 401k (before you are 59 1/2) to make a down payment on a house is not an exception to the 10% early withdrawal penalty. You will owe that penalty plus ordinary income tax on the money you took out of your 401k. You can take money from a traditional IRA without the 10% penalty to purchase a first home but that is not the case for a 401k. If it has not been more than 60 days since you did this you could still pay it back to the 401k. Taking that money from a 401k is an expensive source of money to buy a house.
**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 5, 2019
11:12 PM