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Withdraw from 401

mikej

If I withdraw $100,000 from my 401 to put toward the purchase off a new house, is that taxable ?

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Accepted answers

mikej

Thanks to JMSSGV also.

All comments

JMSSGV

Assuming this is not a Roth 401(k) plan, it's not only taxable as ordinary income, it's also subject to an additional 10% tax unless you're at least 59 1/2.

DaveT

https://community.freetaxusa.com/discussion/2463/withdraw-from-401

If you are withdrawing from a traditional (pre-tax) 401K, then yes the gross distribution is taxable. However, you may be able to avoid an additional 10% early withdrawal penalty under certain circumstances. Review your specific situation with your tax professional.

mikej

Thanks DaveT for the reply. I am 76 and have been withdrawing from the 401 for about 12 years now.

mikej

Thanks to JMSSGV also.