Cathy took money out of her 401k to purchase a house, does she get a tax break?

dmcmellon1 · ‎June 3, 2019

xmasbaby0 · ‎June 3, 2019

No. Unfortunately, taking an early withdrawal from a 401k to purchase a house is not an exception to the penalty. (It is with a traditional IRA, but not a 401k) She should have a 1099R which must be entered and will be paying tax on the distribution from the retirement account.

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.**

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Cathy took money out of her 401k to purchase a house, does she get a tax break?