I withdrew around $27K from my 401(k) for my primary home buy (first time homeowner). Do I need to get and report 1099-R form ?

[MaryK4]

Yes you will get a 1099-R that will need to get reported on your taxes.  

[xmasbaby0 · Accepted solution]

Yes you will get a 1099R.   Hopefully it will not come as a shock to you that if you are younger than 59 1/2 you are going to pay a 10% early withdrawal penalty as well as ordinary income tax on that withdrawal.   When you take money out of a traditional IRA for a home purchase you do not pay a penalty for early withdrawal.   But that exception does not apply to money you take out of a 401k.  The rule is different.  You will have a 10% penalty and income tax.

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.

[Opus 17]

All withdrawals from 401(k) plans are taxable as regular income and you will get a 1099-R, you must report this.  If there was backup withholding, that is only an estimate of the tax owed.  The actual tax is calculated on your tax return and you get credit for the withholding, which will increase your refund or decrease the amount of tax you need to pay.

Additionally if you are under age 59-1/2 or under age 55 in the year you separate from the company, you will pay a 10% penalty for early withdrawal.   You can withdraw up to $10,000 from an IRA for a first time home purchase and not pay the penalty (but you still pay regular income tax).  But 401(k) plans have different rules even though they are similar to IRAs, and the penalty exception for a first time home purchase is not allowed for 401(k) withdrawals.  (If you had done a rollover from the 401(k) to an IRA then withdrawn from the IRA, you might have qualified for the exception to the early withdrawal penalty.)