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New Member
posted Apr 15, 2022 8:49:00 AM

Used 401k funds to purchase a home

Do I have to pay additional taxes?

0 2 198
2 Replies
Level 15
Apr 15, 2022 8:57:38 AM

If you used money from a 401k before you reached age 59 1/2 you will owe the 10% early withdrawal penalty as well as ordinary income tax.   You do not get an exception to an early withdrawal from a 401k for purchasing a house.   The exception for that is only for a traditional IRA.

 

 

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

Expert Alumni
Apr 15, 2022 9:04:27 AM

Did you take a 401k loan or you did you withdraw the money from your account?