Can i deduct monies withdrawn from my retirement account when investing the money into new home construction costs?

[DoninGA]

A withdrawal from a retirement account is not deductible.  The taxable amount reported on the Form 1099-R in box 2a is entered on your federal tax return as ordinary income.

[ThomasM125]

The distribution you take from your retirement account can be taxable and can be subject to a 10% penalty if you are under the age of 59 1/2. If the funds withdrawn are for a qualifying first-time home purchase, you may be able to exclude up to $10,000 of the money from the 10% penalty. The main qualification is that you did not own a home for two years prior to the date your purchased your home. You can learn more on page 27 of IRS publication 590-B.   Pub 590-B

You will see questions regarding this in TurboTax after you enter your From 1099-R reporting your pension plan distribution, if you are subject to the penalty.