Question

I withdraw amount from my qualified 401k account for purchasing home towards down payment . how can i claim these money without being taxable

Forum|Forum|7 years ago
June 1, 2019
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TurboTax Deluxe Online

Employee

Withdrawals from your traditional 401(k) are always taxable since they are tax deferred accounts made up of pre-tax contributions. The IRS has a list of reasons for making early withdrawals which would not incur a penalty, and making a down payment for the purchase of your home is not one of the exceptions for withdrawing money early from a 401(k).

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...