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cgonzales3772
October 15, 2023
Question

Are early withdrawals from a 401k for home improvements, is it still taxable?

  • October 15, 2023
  • 1 reply
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1 reply

DoninGA
DoninGA
Employee
October 15, 2023

Yes, a withdrawal from a 401(k) is taxable income and there are no exemptions from the 10% early withdrawal penalty for home improvements if you are under age 59 1/2 or under the age of 55 and separated from the company that provided the 401(k).

Even if there was an exemption from the penalty the withdrawal is still taxable income.

 

 

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