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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53687
Experience:  29 years of experience as a tax, real estate, and business attorney.
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We are going to take a one time distribution from our retirement

Resolved Question:

We are going to take a one time distribution from our retirement account to buy a house.
What are the tax consequences on this?
Submitted: 5 years ago.
Category: Tax
Expert:  Richard replied 5 years ago.

Good morning. Are you 59 1/2 or older?


Customer: replied 5 years ago.
Expert:  Richard replied 5 years ago.

Thank you. Ok...generally, there is a 10% penalty on the amount withdrawn if you are under 59 1/2.....but,.if this is a first home, you would be qualify for an exemption. Also, if you borrow from your 401k rather than withdraw it, this would not be taxed at all, but you would be obligated to pay it back. Otherwise, this withdrawal would be included in your ordinary income and taxed at your marginal income tax rate.



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