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This last year I purchased a home (my first), but to do so I…

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Hello. This last year...

Hello. This last year I purchased a home (my first), but to do so I had to make an early withdraw from my 401(k) plan. I now owe $24,500 in state and federal tax. Can you help lower my tax bill? I do not want an installment plan looming over my head. Please advise

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I just now turned 59 and a half, and my income is moderate.

Submitted: 2 months ago.Category: Tax
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Answered in 13 minutes by:
4/3/2018
Tax Professional: ABC Accounting Group, Certified Public Accountant (CPA) replied 2 months ago
ABC Accounting Group
ABC Accounting Group, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 882
Experience: Business Consultant/Accounting Manager
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Hi. Great Question. You could withdraw from your 401k plan for a first home purchase - was there any option to take a 401k loan. Thank you.

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Customer reply replied 2 months ago
I took an emergency loan no taxes were taken out.
Tax Professional: ABC Accounting Group, Certified Public Accountant (CPA) replied 2 months ago

Hi. Is it your first home purchase?

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Tax Professional: ABC Accounting Group, Certified Public Accountant (CPA) replied 2 months ago

If you did a 401k loan, it should not be taxable. However, you are still able to withdraw up to $10,000 for the purchase, repair, or remodel of a first home without paying a penalty.

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