I am 35 and withdrew 100% of my state pension for the 1st time purchase of a house. Are there any tax breaks for using the pension to buy a house?

[VolvoGirl · Accepted solution]

Sorry no.  It is taxed as regular income and may push you into a higher tax bracket and if you are under 59 1/2 there is a 10% Early Withdrawal Penalty.

[Opus 17]

An IRA is the only type of plan that has an exception to the penalty.  And you always owe regular income tax.

[VolvoGirl]

Was it from a pension?  They let you take it out?
Or was it from a 401K?  Not that it matters.  Hope it wasn't a lot.

[tbinger22]

It was a state retirement pension.  I was able to take it out because I do not work in that state anymore.  I took out way too much!

[tbinger22]

Thank you for the answers.

[SweetieJean]

"I took out way too much!"  If it's been less than 60 days, you can still roll some over to an IRA.