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Left job to move to another state to be care giver for wife and closed 401k and bought house with the money what do i do for the taxes

 
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Left job to move to another state to be care giver for wife and closed 401k and bought house with the money what do i do for the taxes

You will receive a Form 1099-R for the withdrawal from the 401(k) in January of 2020.  The Form 1099-R is reported on a Federal tax return.  The taxable amount shown on the 1099-R is entered on your tax return as ordinary income and taxed at your current tax rate.  Federal income taxes withheld from the withdrawal are entered on the tax return as a tax payment.

 

A home purchase is not an exemption from the early withdrawal penalty when the withdrawal was from a 401(k) account. 

 

Depending on your age you may owe a 10% early withdrawal penalty on the withdrawal which will be entered on the federal tax return as a tax liability.

See this IRS Tax Topic No. 558 Additional Tax on Early Distributions from Retirement Plans Other than IRAs - https://www.irs.gov/taxtopics/tc558

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Left job to move to another state to be care giver for wife and closed 401k and bought house with the money what do i do for the taxes

you haven't given us any idea of what your taxes will look like for 2019.    you can use TT taxcaster website to estimate federal.  Depending on what sate you live in, you may also owe state taxes.  Taxacaster doesn't handle state taxes.  you will owe taxes and if under 59 1/2 possibly a 10% early withdrawal penalty.

 

 

you may be able to treat some or all as meeting one or more exceptions to the penalty.    see form 5329 line 2 instructions for exceptions.   Note that the home buying exception does not apply to 401k's

https://www.irs.gov/pub/irs-pdf/i5329.pdf

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