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I took out a hardship withdrawal from my 401k as a first time home buyer, how do I declare this on my taxes? My only 1099-R questions are qualified disaster

 
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2 Replies

I took out a hardship withdrawal from my 401k as a first time home buyer, how do I declare this on my taxes? My only 1099-R questions are qualified disaster

Sorry---taking money out of a 401k to make a down payment on a house is not an exception to the early withdrawal penalty.  You can take money from a traditional IRA without that 10% penalty, but not from a 401k.   You will be subject to the 10% early withdrawal penalty if you were younger than 59 1/2  plus ordinary income tax on the distribution from your 401k.

 

 

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

I took out a hardship withdrawal from my 401k as a first time home buyer, how do I declare this on my taxes? My only 1099-R questions are qualified disaster

All 401k withdrawals are subject to regular income tax.

There are some exceptions to the 10% penalty for early withdrawal if you are under age 59-1/2, but the exceptions are different for different types of plans and an IRA is not the same as a 401k in the tax law even though they have the same basic purpose. 

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-o...

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