We cashed out our retirement account to make a down payment on our home in 2016. Do we still need to pay taxes on that money? We sold our last home in 2015.

[turbocoleman]

We didn't make any money from the home sale in 2015 so had to cash in retirement account to make down payment.

[VolvoGirl · Accepted solution]

Yes it is taxable.  And it may push you into a higher tax bracket.  You should have gotten a 1099R for it.