How much will I pay in tax this year? I claim 0 with 2500 return. single about 60k a year. taking out 66k this year from my 401k to purchase a new home here in Ca.

h22aluder · ‎June 3, 2019

xmasbaby0 · ‎June 3, 2019

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.

**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.**

View solution in original post

xmasbaby0 · ‎June 3, 2019

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.

**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.**

Expert does your taxes

Do it yourself

Resources

Support

How much will I pay in tax this year? I claim 0 with 2500 return. single about 60k a year. taking out 66k this year from my 401k to purchase a new home here in Ca.