Wave the 10% penalty for withdrawing money from the 401k before age 59 1/2

[apstndp]

ok so i have a mobile home and 1 acre of land where the mobile home sits. i withdraw money from my 401k to help me build a house on another peace of property that i bought.

so is the mobile that i own considered a house? if it is not considered a house, would i be able to wave the 10% penalty since i used it to complete my house project?

also, this 10% penalty is an additional penalty that one has to pay besides all the tax money that i have taken away from the withdraw already?

[Howard1948 · Accepted solution]

The exception to the 10% early withdrawal penalty does not apply to 401(k) withdrawals.  It only applies to IRA early withdrawals.  And yes, the 10% penalty is in addition to the regular income tax on the withdrawal.

[apstndp]

thank you so much!!!