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posted Jun 6, 2019 5:12:48 AM

We took money from the 401k to make our 1st purchaSE OF PROPERTY BUT NOT A HOME DOES IT QUALIFY?

WE WITHDREW THE $ IN 2016 & PAID THE PENALTY & I SWARE THE TAX AS WELL.... dO i HAVE TO PAY THE TAX ON IT AGAIN?

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1 Replies
Level 15
Jun 6, 2019 5:12:50 AM

The amount you paid as an early withdrawal penalty plus tax was an estimate.  When you added that money to your other income, your tax liability could still have increased.  And you do know that taking money out of your 401k to purchase a home or property  is not an exception to the early withdrawal penalty, right?