Skip to main content
April 15, 2024
Solved

Do I need to pay a 10% tax on the distribution I got from my 401k when it was used to purchase my first home?

  • April 15, 2024
  • 1 reply
  • 0 views
From my understanding the 10% tax penalty is waved if its for a qualify reason and again from what I know first time home buyers falls under a qualified event. It that accurate?
Best answer by dmertz

The first-home-purchase exception to the early-distribution penalty applies only to distributions from IRAs, not to distributions from a 401(k).  A 401(k) is not an IRA.

1 reply

dmertzAnswer
Employee
April 15, 2024

The first-home-purchase exception to the early-distribution penalty applies only to distributions from IRAs, not to distributions from a 401(k).  A 401(k) is not an IRA.