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: 
gynene1122
New Member

If I had a 401k withdrawal for a home down payment is it tax exempt

can I put the amount of the withdrawal under the "other reason" box so that I don't have to pay the tax penalty if it was taken out for a down payment to purchase a home?
1 Reply
Texas Roger
Level 15

If I had a 401k withdrawal for a home down payment is it tax exempt

There is no reason for withdrawing from a 401K that would make it tax exempt. There are some things that the money from the withdrawal can be used for that would exclude you from having to pay the 10% early withdrawal penalty if you were under age 59 1/2. However, a home purchase is not one of those things for a 401K withdrawal. You must pay taxes on the withdrawal and will owe the 10% early withdrawal penalty if your were under 59 1/2.

About Community

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

3.48m
Members

2.6m
Discussions

Manage cookies
v