Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
vj1980
New Member

I thought if I made a withdraw from my 401k and used the money for a down payment on my new home. Then there wouldn't be a penalty.

 
1 Best answer

Accepted Solutions
Lisa995
Level 12

I thought if I made a withdraw from my 401k and used the money for a down payment on my new home. Then there wouldn't be a penalty.

Ohhh, no, that only applies to IRA distributions, not 401K distributions. 

If you had rolled your 401k into an IRA, then took the money from the IRA, you could get exception to the penalty on the first $10,000.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

View solution in original post

1 Reply
Lisa995
Level 12

I thought if I made a withdraw from my 401k and used the money for a down payment on my new home. Then there wouldn't be a penalty.

Ohhh, no, that only applies to IRA distributions, not 401K distributions. 

If you had rolled your 401k into an IRA, then took the money from the IRA, you could get exception to the penalty on the first $10,000.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

Manage cookies
v