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December 5, 2020
Question

I have ~$60k of adoption credit that rolls over from year to year. I want to cash out 1 of my 401k accounts to invest in real estate, does my credit take care of the tax?

  • December 5, 2020
  • 1 reply
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1 reply

Critter-3
December 6, 2020

The adoption credit covers federal taxes only no matter what kind of ordinary income is generating it ... but it will not cover any early withdrawal penalties on the distribution.