Do I need to pay taxes if I returned all money withdrawn within 60 days from an IRA towards downpayment of first home purchase?

Forum|Forum|1 year ago
February 17, 2025
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I received a 1099-R.

Best answer by VolvoGirl

Code 1? That is for an early distribution if you are under 59 1/2. There would be an 10% Early Withdrawal Penalty on the taxable amount. There is an exception for buying a house.

You can exempt up 10,000 for the penalty for a new home purchase. And that is for each spouse's withdrawal.

VolvoGirl

Employee

No unless you didn’t replace any withholding that might have been taken out. Then the withholding becomes a distribution. After you enter the 1099R it will ask what you did with it.

Pick I moved it to another retirement account even if you put it back into the same account.

Oh what code is in box 7?

ryan-kowlessarAuthor

VolvoGirlAnswer

Employee

Code 1? That is for an early distribution if you are under 59 1/2. There would be an 10% Early Withdrawal Penalty on the taxable amount. There is an exception for buying a house.

You can exempt up 10,000 for the penalty for a new home purchase. And that is for each spouse's withdrawal.