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Level 2

Question

Would the 30% solar energy tax credit totally compensate for the 22%-24% extra taxes I will pay if I purchase the solar system using retirement account money?

Forum|Forum|6 years ago
September 18, 2019
2 replies
31 views

No text available

Level 15

Good question which can only really be answered by doing a test return to see how it works out ... it is a $ for $ credit against the federal tax liability BUT NOT the early withdrawal 10% penalty if you are under the age of 59 1/2 .... for instance if the solar cost is $30K then the credit would be $9K & if you take the $30K out of your 401K the taxes at 24% would be $7200 so the $9K credit would cover it but not any penalty ($20K x 10% = $3K)

Level 2

Thanks