First Time Home Buyer 401k Withdrawal at Buying

First Time Home Buyer 401k Withdrawal. The second option for a 401k first time home buyer is a withdrawal. If you have not owned a primary residence in the past two years, you can withdraw up to $10,000 without incurring the 10% early withdrawal penalty (additional amounts have the 10% penalty).

The exception to the 10% penalty is only for withdrawals from an ira for a first time home purchase and then only on the first $10,000 withdrawn. The money is yours once you take it out and it does not have to be repaid. However, they will be required to pay income tax on the amount withdrawn.

ROTH IRA LLC Contribution Facts My Solo 401k Financial

The exception to the 10% penalty is only for withdrawals from an ira for a first time home purchase and then only on the first $10,000 withdrawn. Your 401k has a really interesting tax provision for it so that you can use the money to purchase a home with an ability to repay it over time. Income tax due, will owe 10% penalty. The money is yours once you take it out and it does not have to be repaid.