I took out 90k out of 401k to pay off house. any ideas to avoid the tax hit since it has put my income over 180k?

[MinhT · Accepted solution]

Unfortunately, there is no way to limit the tax hit. Your 401(k) is taxable and the amount is added to your other income to be taxed.

Also, if you were under 59 1/2 at the time of withdrawal, you have to pay an early withdrawal penalty of 10% of the amount withdrawn. Paying off your mortgage is not an exception to the early withdrawal penalty.