You'll need to sign in or create an account to connect with an expert.
Did you already take money out of your 401k? Please be aware that taking an early withdrawal from a 401k to buy a house is NOT an exception to the early withdrawal penalty of 10%. There is an exception to that penalty with a traditional IRA, but NOT for a 401k. So if you take money out of your 401k to purchase a house, you will pay a 10% early withdrawal penalty plus ordinary income tax on the distribution, based on your tax bracket.
Did you already take money out of your 401k? Please be aware that taking an early withdrawal from a 401k to buy a house is NOT an exception to the early withdrawal penalty of 10%. There is an exception to that penalty with a traditional IRA, but NOT for a 401k. So if you take money out of your 401k to purchase a house, you will pay a 10% early withdrawal penalty plus ordinary income tax on the distribution, based on your tax bracket.
Still have questions?
Make a postDid the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.