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Do i need to pay taxes for a 401K withdraw for a first home purchase?

 
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Do i need to pay taxes for a 401K withdraw for a first home purchase?

Yes, you do.  Taking money out of a 401k to buy a home is not an exception to the 10% early withdrawal penalty, so if you are younger than 59 1/2 you have the penalty and you have ordinary income tax to pay on the money you took out.  There is an exception to the 10% penalty with a traditional IRA, but not for a 401k.

 

You should have a 1099R for the money you took out of your 401k.

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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