Withdraw from 401

mikej
mikej Member Posts: 3 Newcomer
edited April 9 in General

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

Best Answer

  • mikej
    mikej Member Posts: 3 Newcomer
    Answer ✓

    Thanks to JMSSGV also.

Answers

  • JMSSGV
    JMSSGV Member Posts: 243

    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
    DaveT Member Posts: 73
    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
    mikej Member Posts: 3 Newcomer

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

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