how to state early withdrawal for purchase or primary residence

[NHIENDDANG]

to avoid the 10% tax

[DoninGA · Accepted solution]

The exception to the 10% early distribution penalty for the purchase of a new home is only available if the distribution is from an IRA.

Enter your Form 1099-R and go through all the screens after entry of the 1099-R and you will come to a screen asking about exceptions to the early distribution penalty.

[VolvoGirl · Accepted solution]

Is this for a IRA?   It’s not an exception for a 401K.

If you qualify as a "first time home buyer", the first $10,000 IRA withdraw can be exempt from the 10% penalty for early withdrawal.  And that is for each spouse's withdrawal.  You will still pay regular income tax.  Any amount more than $10,000 that you withdraw will be subject to the penalty and the income tax.

After complete the Form 1099-R there will be a series of screens asking question based on what you entered.  One of the screens will be for exceptions to the 10% early withdrawal penalty.