Are there any tax benefits if I purchase a primary residence with a 401k withdrawl?

[SweetieJean]

Are you over age 59.5?

[jacrary]

yes, 69.

[SweetieJean · Accepted solution]

Right, so you will owe regular Federal taxes, plus state taxes if applicable.   Note that any increase in income can make more of your Social Security benefits taxable.  Also see:

https://www.ssa.gov/pubs/EN-05-10536.pdf

https://fairmark.com/general-taxation/reference-room/tax-brackets/2019-tax-brackets/

As for benefits, you can deduct property taxes paid if you itemize (subject to the $10,000 SALT limit), as well as any Mortgage interest paid subject to limitations.

[xmasbaby0]

If you take funds from your 401k before you are 59 1/2 you will pay a 10% early withdrawal penalty and you will pay ordinary income tax on the distribution as well. Using funds from a 401k is NOT an exception to the early withdrawal penalty. If you use funds from a traditional IRA then you can avoid the early withdrawal penalty but you still pay tax on the distribution. 

[jacrary]

I am 69 1/2 so it is not an early withdrawl.