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O
ondron
Employee
March 20, 2019
Question

401k

  • March 20, 2019
  • 1 reply
  • 0 views

If i was laid off last year from my employer and I was a first time homebuyer, is my 401k withdrawal still penalized?

1 reply

MargaretL
MargaretL
Employee
March 22, 2019

Yes, 401(k) distribution is still penalized, unfortunately. The IRS doesn't allow an exception to the penalty for buying a home... and being laid off from work does not count as an exception either... Please click here to see the complete list of exceptions, scroll down to Homebuyers, it shows first column, 401(k), as no exception to the additional 10% penalty.

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