Cashed out 401k to purchase primary residence. There is no mortgage, what if any tax breaks or credits are we entitled to?
01368
1 Replies
VolvoGirl
Level 15
Jun 4, 2019 4:07:20 PM
Nothing for the 401K cash out. It is taxable and a 10% Early Withdrawal Penalty if you are under 59 1/2. And it will probably push you into a higher tax bracket. You can deduct property taxes on the house if you itemize deductions.