Question

So withdrew 401k money last year for a house down payment but i'm unsure where to put that info. in the wages section or deductions?

Forum|Forum|6 years ago
January 12, 2020
1 reply
0 views

No text available

TurboTax Deluxe Online

Employee

You will get a 1099R for it. You don't enter about using it to buy a house. It will be taxable and a 10% Early Withdrawal Penalty if you are under 59 1/2.

The easiest way to get to the 1099-R entry screen is to simply search for 1099-R (upper- or lower-case, with or without the dash) in your TurboTax program and then click the "Jump to" link in the search results.

Enter a 1099R under

Federal Taxes on the left side

Wages & Income at the top

Then scroll way down to Retirement Plans and Social Security,

Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit

If you are filing a Joint return be sure to pick which person it is for.

X

xmasbaby0

Employee

Hope you understood when you took money out of your 401k that you are going to pay a 10% early withdrawal penalty if you are younger than 59 1/2, plus ordinary income tax on the distribution. Taking money out of a 401k to buy a house is not the same as taking it out of a traditional IRA, with which you can take out up to $10,000 to buy a house without that early withdrawal penalty. There IS a penalty for a 401k, which makes it a pretty expensive way to make a down payment on a house.

You will get a 1099R in late January/early February and you will need to enter it on your tax return.

To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

S

shane1526Author

Yes i already know about the taxing and 10 percent. I had to pay the 10 percent when i withdrew the money which was only like $400. I was just trying fo figure out where i had to put the info since in deductions it asked me about if i used any of my 401k money which confused me due to the federal part where wages it asked about it as well.