IRA Early Distribution for First Time Home.

[jacob45]

I purchased a home for the first time on 4/4/24. Later that year I took an early distribution. Can I still claim this early distribution for the exemption?

[MindyB]

Yes. Up to $10,000 is excluded from the penalty, but you do need to indicate that you used the money for a first time home purchase.

Here's how to do this in TurboTax Online:

• Navigate to Federal > Wages & Income > IRA, 401(k), Pension Plan Withdrawals (1099-R) Add/Edit
• Your withdrawal will be shown in a summary on a screen that says "Here's your 1099-R info"
• Choose "Continue"
• Continue through the interview until you arrive at a screen that says "Did you use your IRA to pay for any of these expenses?"
• Here, enter the amount of the withdrawal spent on the first-time home purchase (up to $10,000)

Here is some information you may find helpful: An Early Withdrawal From Your 401(k): Understanding the Consequences.