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New Member
posted Jun 3, 2019 4:56:17 PM

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.

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1 Best answer
Level 15
Jun 3, 2019 4:56:19 PM

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.

1 Replies
Level 15
Jun 3, 2019 4:56:19 PM

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.