4013 b hardship withdrawl

Forum|Forum|4 months ago
March 18, 2026
1 reply
67 views

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]

TurboTax Home & Biz Windows

xmasbaby0

Level 15

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.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**