Question

Took a withdrawal out of 401(k) Plan Distributions and Used for first Home Purchases in Qualified Disaster Areas

Forum|Forum|4 years ago
February 23, 2022
2 replies
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I used a majority of the withdrawal to purchase my first home between December 27, 2020, until June 25, 2021. How do I input this to reduce the 10% early withdrawal?

https://complianceadministrators.com/coronavirus-covid-19-regulations-401k-plan-considerations/

https://wilkecpa.com/qualified-disaster-related-distributions-from-retirement-plans/

M

MAK70

Unfortunately, you are able to withdraw from your 401(k) because of the "hardship" provision in order to purchase a new home, but there is no such allowance to avoid the 10% penalty. The links you have refer to the repayment of the 401(k) used for a home purchase and repaid before June 25, 2021.