You might be confused because you have heard that folks can use money from an IRA for a down payment on a home without paying an early withdrawal penalty. That has never been true for a 401k--an early withdrawal from a 401k for a down payment would still incur a penalty.
But you are not making an early withdrawal since you are over 59 1/2, so no worries about a penalty. But any money you take out of the 401k will be taxable income, no matter what you use it for. You will receive a 1099R in January which must be entered on your next tax return.
You might be confused because you have heard that folks can use money from an IRA for a down payment on a home without paying an early withdrawal penalty. That has never been true for a 401k--an early withdrawal from a 401k for a down payment would still incur a penalty.
But you are not making an early withdrawal since you are over 59 1/2, so no worries about a penalty. But any money you take out of the 401k will be taxable income, no matter what you use it for. You will receive a 1099R in January which must be entered on your next tax return.
Yes, but it will be taxable for Federal, and perhaps for state.
There is no penalty (due to your age).