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New Member
posted Jun 4, 2019 4:07:18 PM

Cashed out 401k to purchase primary residence. There is no mortgage, what if any tax breaks or credits are we entitled to?

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1 Replies
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.