Home mortgage

[rlgraham55]

I withdrew money from my 401K to pay off my house mortgage. Is there a deduction I can take for this withdraw/payment?

[Loretta P]

If you are under 59 1/2 years old, you will pay a 10% early withdrawal penalty unless you qualify for one of the exceptions:

• Death, or total and permanent disability
• Qualified Domestic Relations Order
• Series of substantially equal periodic payments based on life expectancy
• Dividend pass through from an ESOP
• IRS levy
• Unreimbursed medical expenses that are more than a certain amount of your adjusted gross income
• Certain distributions to qualified military reservists called to active duty
• Separation from Service if age requirement is met

Paying off a mortgage is not an itemized deduction on Schedule A.  Any interest paid in the tax year prior to the payoff would still be deductible on Schedule A.