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I'm planning to use 50k from my IRA to use as down payment…

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I'm planning to use 50k...
I'm planning to use 50k from my IRA to use as down payment on a home. I anticipate that it will take more than 60 days to return funds to the IRA. Could I use a distribution (not a loan) from my employer 401k to return funds to the IRA within that initial 60 dat
Yes. Then repay the 401k within the 60 days. To avoid tax
Submitted: 6 months ago.Category: Tax
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8/7/2017
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 6 months ago
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,394
Experience: Certified Public Accountant
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Yes, as long as the funds are rolled over to a qualified retirement account (IRA) within the 60 day period there would not be a tax. There is usually a 20% withholding on 401K distributions. If you return all of the distribution there would not be any tax. If there is withholding, you would be able to have this refunded when you file your tax return.

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