If my wife and I both withdrew from 401k to purchase a house can we claim 10k each without early withdrawal penalty or is it 10k max per couple? If so how can we do so?

esevieux · ‎June 4, 2019

xmasbaby0 · ‎June 4, 2019

Taking money from your 401k to purchase a house is not an exception to the 10% early withdrawal penalty. That is only with a traditional IRA. You will face the early withdrawal penalty and ordinary income tax on the amount you took out of a 401k. You will each receive a 1099R for the distributions, which must be entered on your tax return.

**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.**

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xmasbaby0 · ‎June 4, 2019

Taking money from your 401k to purchase a house is not an exception to the 10% early withdrawal penalty. That is only with a traditional IRA. You will face the early withdrawal penalty and ordinary income tax on the amount you took out of a 401k. You will each receive a 1099R for the distributions, which must be entered on your tax return.

**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.**

If my wife and I both withdrew from 401k to purchase a house can we claim 10k each without early withdrawal penalty or is it 10k max per couple? If so how can we do so?