Solved: 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?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
esevieux
New Member

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?

 
1 Best answer

Accepted Solutions
xmasbaby0
Level 15

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?

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.**

View solution in original post

1 Reply
xmasbaby0
Level 15

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?

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.**

View solution in original post

Dynamic AdsDynamic Ads
v
Privacy Settings