4013 b hardship withdrawl

bobalbertfamily — Wed, 18 Mar 2026 18:38:09 GMT

Hello.

We are doing the taxes for my son.

He is a first time home buyer and he took a hardship withdrawal from his 403 B (teacher) of $30,000.00 to buy a home here in CA. He knew it would be added to his income, but thought it would not be subject to the extra 10% penalty because it was a hardship withdrawal that was allowed by the plan.

In doing his taxes on Turbo Tax Home and Business, it is charging the 10% penalty. The program does not ask why the withdrawal was taken (for first time home buyer).

How can we remove the substantial penalty. or is this correct as is??/

Thank you.

Bob
[edited]

Re: 4013 b hardship withdrawl

xmasbaby0 — Wed, 18 Mar 2026 18:48:17 GMT

When you take money from a traditional IRA the early withdrawal penalty is waived for the first $10,000 if the money is used for a down payment on a home. There is no waiver of the early withdrawal penalty for taking money from a 403b or 401k to put a down payment on a home. Sorry---your son chose an expensive way to make his down payment.

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4013 b hardship withdrawl

Re: 4013 b hardship withdrawl