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Enter a 1099R under
Federal Taxes on left
Wages & Income at the top
Then scroll way down to Retirement Plans and Social Security
Then IRA, 401(k), Pension Plan Withdrawals (1099-R) – Click Start
Don't type the bank name or try to import it.
At the bottom pick - Change How I enter my Form
Then on the next screen pick - I'll Type it in Myself
Be sure to pick the right kind of 1099R on the 4 boxes. 1099R or CSA1099R or CSF1099R or RRB1099R
If you are filing a Joint return be sure to pick which person it is for.
There is no exception to the 10% early withdrawal penalty for a first time home purchase if the funds were distributed from a 401(k).
Online editions -
Enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R
On the screen Did you get a 1099-R in 2021? Click on Yes
On the next screen click on Continue
On the screen Let's import your tax info Click on Change how I enter my form
On the screen How do you want to add your 1099‑R? Click on Type it in myself
On the screen Who gave you a 1099-R? select the type of 1099-R you received and Continue
If you took money out of a 401k before you were 59 1/2, you will owe the 10% early withdrawal penalty as well as ordinary tax on the withdrawal. Using money from a 401k for a down payment on a house is not an exception to the early withdrawal penalty. Taking money from a traditional IRA for a down payment would have been different. You will receive a 1099R in late January/early February for the distribution from the 401k, which must be entered on your tax return.
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