I purchased my first home in 2013 after borrowing $10K from my 401K. In 2014, my return was reduced by $1K (10%), How do I recoup the $1K as I was a 1st Time Homebuyer?

[DoninGA · Accepted solution]

There is no 10% early withdrawal exception for a first time homebuyer from a 401(k) account.  That is only available for a withdrawal from an IRA and then only the first $10,000 has the exemption.

See this IRS website for early withdrawal exceptions from other than an IRA - https://www.irs.gov/taxtopics/tc558

See this IRS website for early withdrawal exceptions from an IRA - https://www.irs.gov/taxtopics/tc557