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New Member
posted Feb 17, 2025 2:18:08 PM

Do I need to pay taxes if I returned all money withdrawn within 60 days from an IRA towards downpayment of first home purchase?

I received a 1099-R.

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1 Best answer
Level 15
Feb 17, 2025 2:31:39 PM

Code 1?  That is for an early distribution if you are under 59 1/2.  There would be an 10% Early Withdrawal Penalty on the taxable amount.  There is an exception for buying a house.  

You can exempt up 10,000 for the penalty for a new home purchase.  And that is for each spouse's withdrawal.

3 Replies
Level 15
Feb 17, 2025 2:22:26 PM

No unless you didn’t replace any withholding that might have been taken out.  Then the withholding becomes a distribution.   After you enter the 1099R it will ask what you did with it.  

Pick I moved it to another retirement account even if you put it back into the same account.

 

Oh what code is in box 7?

New Member
Feb 17, 2025 2:25:26 PM

1

Level 15
Feb 17, 2025 2:31:39 PM

Code 1?  That is for an early distribution if you are under 59 1/2.  There would be an 10% Early Withdrawal Penalty on the taxable amount.  There is an exception for buying a house.  

You can exempt up 10,000 for the penalty for a new home purchase.  And that is for each spouse's withdrawal.