I received my 1099-r and the distribution code 1 but i withdrew money from my 401 k for my down payment and closing cost on my home in 2016 . Is this right ?
01456
1 Replies
jerry2000
Alumni
Jun 1, 2019 12:19:46 AM
A distribution code of 1 means early withdrawal, no penalty exception. Using 401k money to buy a home is not an exception to the penalty for early withdrawal, and the distribution is fully taxable as ordinary income.