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Can Retirement distribution go to your principle of your mortgage? There was only 10% taken for Fed and no state and because of the amount, it says I owe taxes of $20K

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Can Retirement distribution go to your principle of your mortgage? There was only 10% taken for Fed and no state and because of the amount, it says I owe taxes of $20K

It is a taxable distribution regardless of where it is spent.

If an IRA and first time home buyer you can exclude $10,000 from the early withdrawal penalty if you have one.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

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Can Retirement distribution go to your principle of your mortgage? There was only 10% taken for Fed and no state and because of the amount, it says I owe taxes of $20K

It is a taxable distribution regardless of where it is spent.

If an IRA and first time home buyer you can exclude $10,000 from the early withdrawal penalty if you have one.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

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