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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I am 60 yrs old and have about 85K in a 401k account. Can

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I am 60 yrs old and have about 85K in a 401k account. Can I use it to replace a manufactured home I am living in with another house without pay taxes on what I take out?

Hello JA Customer,


Unfortunately you cannot use the money in your 401k account for any purpose whatsoever without paying taxes on the amount you withdraw. There are absolutely no exceptions to that rule.


None of the money in your 401k has ever been tax paid, and it becomes immediately subject to tax in the year the money is withdrawn, no exceptions at all.


There are some very few exceptions to the early penalty withdrawal, but this would not even apply to you since you are over the age of 59-1/2.


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Thank you JA Customer



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