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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2308
Experience:  Certified Public Accountant
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I'm planning to use 50k from my IRA to use as down payment

Customer Question

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: 2 months ago.
Category: Tax
Expert:  Mark Taylor replied 2 months ago.

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.

Can you reply to the posit. For some reason new questions are being created.