turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the Refund! >> Event happening NOW!!!!
Close icon
Do you have a TurboTax Online account?

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

I used my 401K to purchase a home. I checked the IRS & found out that i do not have to pay the penalty if I purchased a home within 120 days. I cannot find where to fix

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

I used my 401K to purchase a home. I checked the IRS & found out that i do not have to pay the penalty if I purchased a home within 120 days. I cannot find where to fix

A withdrawal from a 401k tax deferred retirement account is not eligible for the 10% early withdrawal exception for a first time home purchase.  Only withdrawals from an IRA are eligible and then only the first $10,000 used is eligible for the early withdrawal exception.

See this IRS Tax Topic for IRA early withdrawal exceptions - https://www.irs.gov/taxtopics/tc557.html

See this IRS Tax Topic for non-IRA early withdrawal exceptions - https://www.irs.gov/taxtopics/tc558.html

View solution in original post

1 Reply

I used my 401K to purchase a home. I checked the IRS & found out that i do not have to pay the penalty if I purchased a home within 120 days. I cannot find where to fix

A withdrawal from a 401k tax deferred retirement account is not eligible for the 10% early withdrawal exception for a first time home purchase.  Only withdrawals from an IRA are eligible and then only the first $10,000 used is eligible for the early withdrawal exception.

See this IRS Tax Topic for IRA early withdrawal exceptions - https://www.irs.gov/taxtopics/tc557.html

See this IRS Tax Topic for non-IRA early withdrawal exceptions - https://www.irs.gov/taxtopics/tc558.html

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies