Is money withdrawn from a retirement account- used for Home Improvements- roof repairs eligible for a tax deduction?

Movie1 · ‎March 4, 2023

The funds were taxed 20% at withdrawal for a TSP as an eligible rollover distribution

MaryK4 · ‎March 4, 2023

No, if you used your distribution for home improvements (unless your home was damaged in a federally declared disaster), you would not qualify for an exception to the early withdrawal penalty. The withholding will be applied to pay any tax liability due when you complete your tax return. An eligible rollover distribution indicates that you had 60 days from the time you withdrew to put the money back into another qualified retirement account (like an IRA).

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MaryK4 · ‎March 4, 2023

No, if you used your distribution for home improvements (unless your home was damaged in a federally declared disaster), you would not qualify for an exception to the early withdrawal penalty. The withholding will be applied to pay any tax liability due when you complete your tax return. An eligible rollover distribution indicates that you had 60 days from the time you withdrew to put the money back into another qualified retirement account (like an IRA).

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Is money withdrawn from a retirement account- used for Home Improvements- roof repairs eligible for a tax deduction?