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February 3, 2025
Question

First Time Homebuyer Form 5329

  • February 3, 2025
  • 1 reply
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I purchased my first home last year and did the "hardship" withdrawal from my 401k per my company's instructions. I had taxes kept from the deposited funds, but when I input the information from the 1099-R, there isn't a place for "first time home buyer withdrawal". I searched the FAQs and found that the 5329 should populate as long as the SEP box was checked, but mine was not. Am I able to just search the form and fill it out if that box was not checked so I can get the penalty waived on that first 10k?

    1 reply

    February 3, 2025

    No, you can't search the Form 5329 in the online version of TurboTax, and you shouldn't complete it under your circumstances. According to an article on retirement topics from the IRS, early withdrawals from a 401-K plan are not exempt from a penalty if used for a new home purchase:

     

     

    A SEP plan is not a 401-K, so it would not be accurate to categorize your distribution that way.

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