How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask emc011075 Your Own Question
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2195
Experience:  IRS licensed Enrolled Agent and tax instructor
Type Your Tax Question Here...
emc011075 is online now
A new question is answered every 9 seconds

I retired May 31, 2015 and cashed out my 401k and one pension

Customer Question

I retired May 31, 2015 and cashed out my 401k and one pension to purchase a
home. I used turbo tax to do my taxes and I have to pay $8700.00. Is there any
tax breaks for buying a home.
Submitted: 6 months ago.
Category: Tax
Expert:  emc011075 replied 6 months ago.
I my name is ***** ***** I will be happy to help you. The only tax break you get when you use your retirement fund to purchase your home is up to 1k of penalty reduction. However, however the distribution must be made from IRA, not 401K, it has to be for purchase of your first home (you didn't own a home in the last 2 years) and it only apply to the first $10,000 of the distribution. If you used your 401k, unfortunately there's no tax break.
Customer: replied 6 months ago.
Expert:  emc011075 replied 6 months ago.
You're welcome. i wish I had a better news for you. Is there anything else I can help you with today? And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.