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Level 2

Question

Withdrawing funds from 401K to purchase a home.

Forum|Forum|4 years ago
January 26, 2022
2 replies
26 views

Is there any reporting difference when reporting an 1099-R withdrawal used to purchase a second home?

ItsDeductible Online

Level 15

There is not an exception to the 10% early withdrawal penalty for taking money from a 401k to buy a home. That exception to the penalty is only for a traditional IRA. You will owe the penalty and ordinary income tax. Did you already take out the money? You have 60 days to put it back if you want to avoid that penalty.

Enter your 1099R if you have i

To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.

**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.**

Level 15

No difference. You pay ordinary income tax as well as a penalty if it is an early withdrawal.