You'll need to sign in or create an account to connect with an expert.
That exclusion from penalty for first time home buyers is only available if you took the distribution from an IRA retirement account. If you took the distribution from your 401K plan, there is no first time home buyer exclusion from the 10% penalty.
In the future, if you need money out of your 401K type retirement account, check with your plan administrator and inquire if you can take a loan from your account balance instead of a distribution. You will be paying interest but its back to yourself.
The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020 taxes.
Thanks for this information and advice. Turns out the account was a 401k, not an IRA. Bummer.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
TaxFart
Level 2
The_Bill_S
Level 1
AAR1
New Member
coloradotracker
Returning Member
tonyv19
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.