i withdrew 401k account to buy a bigger house as my family grew. would this distribution qualify for any tax deductions and reduced penalty? i didn't sell my first house.

Forum|Forum|1 year ago
February 20, 2025
2 replies
0 views

if i see the previous house, i won't be able to buy it at the price i purchased back in 2018, so i withdrew my 401k and bought bigger home to accomodate need.

fanfare

Employee

Assuming you are under age 59 1/2 there is tax on your distribution and another 10% penalty for invading your 401k early.

@sampath-ramkumar

dmertz

Employee

As fanfare indicated, using the money to buy a second house has no bearing on the tax consequences of having received the 401(k) distribution.

i withdrew 401k account to buy a bigger house as my family grew. would this distribution qualify for any tax deductions and reduced penalty? i didn't sell my first house.

2 replies

Unlock tailored help options in your account

Get answers to all your tax questions

Vos impôts avec un expert

Faites vos impôts vous-même

Situations fiscales

Ressources

Experts at your fingertips

Do it yourself

Business taxes

Tax situations

Resources

Unlock tailored help options in your account

Get answers to all your tax questions

Sign up

Login with SSO

Login to the community

Login with SSO

Scanning file for viruses.

This file cannot be downloaded