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Good morning. Are you 59 1/2 or older?
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 Ok...generally, there is a 10% penalty on the amount withdrawn if you are under 59 1/2.....but,.if this is a first home, you would be qualify for an exemption.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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