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January 28, 2021
Question

If I took $ from my 401K to pay my deceased mom's mortgage so my handicapped brother can continue to live there, do I still have to pay taxes on that distribution?

  • January 28, 2021
  • 1 reply
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1 reply

Employee
January 28, 2021

Certainly.  401(k) distributions are taxable the same no matter what you did with the money short of rolling it over to another qualified retirement account to continue to defer taxes on this money.