Is 401k withdrawl to buy 1st home exempt from early 10% withdrawl pentalty and any other taxes?
cj asked:
and if so how do i do it on my taxes?
problem is i took a 401k loan out and then lost my job and money was spent on down payment of house
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and if so how do i do it on my taxes?
problem is i took a 401k loan out and then lost my job and money was spent on down payment of house
February 28th, 2009 at 6:55 am
No.
The exception to the 10% penalty only applies to IRAs; not 401k’s.
If you took money out of a 401k for a home purchase, you will pay taxes plus a 10% penalty.
March 3rd, 2009 at 1:02 am
No. Within limits, an IRA withdrawal for that reason can be exempt from the penalty, but not a 401K.
March 5th, 2009 at 9:52 pm
No. Consider taking a loan against your 401k. You have to pay it back but you are paying interest to yourself.
March 8th, 2009 at 5:21 pm
Not exempt…1st time home purchase is only exempt up to first $10,000 from an IRA. 401k is not afforded that exemption. Fact that you took it as a loan and then subsequently defaulted is irrelevent.