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#3
04-08-2004, 08:22 PM
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 Re: Early Distribution and First Home Purchase jgd42 wrote: - quote - > Last year I took an early distribution from my 401k to
True.> purchase my first house. I had done some research before > doing so and was under the impression that because it was > for my first home, I would be exempt from the 10% penalty. I > did not advise a tax accountant and I now wish I had. > It looks like I cannot take this exception because it was > not an IRA. Is this true? - quote - > Could I have rolled it over to an
Interesting idea there. I've never read any restrictions on> IRA and then withdrawn it without penalty? doing it this way, but ... there SHOULD be a law disallowing such. If so, why is this allowed from an IRA but not a 401k? Congress, in it's finite wisdom is the reason it's allowed. Cheer$$, Harlan Lunsford, EA n LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
04-08-2004, 08:03 PM
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| Re: Early Distribution and First Home Purchase - quote - > Last year I took an early distribution from my 401k to
Yep.> purchase my first house. I had done some research before > doing so and was under the impression that because it was > for my first home, I would be exempt from the 10% penalty. I > did not advise a tax accountant and I now wish I had. > It looks like I cannot take this exception because it was > not an IRA. Is this true? - quote - > Could I have rolled it over to an
Not if you are still with the employer.> IRA and then withdrawn it without penalty? - quote - > If so, why is
Ask your Congress critter, they set the laws.> this allowed from an IRA but not a 401k? Helen, EA in PA Member of The Tax Gang Director, National Assoication of Enrolled Agents Immediate Past President, PA Society of Enrolled Agents << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
04-08-2004, 07:43 PM
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| Re: Early Distribution and First Home Purchase "jgd42" <jgd42-tat[at]yahoo.com> writes: [took early distribution from 401(k) to purchase house, got dinged by 10% early withdrawal penalty] - quote - > It looks like I cannot take this exception because it was
Yes.> not an IRA. Is this true? - quote - > Could I have rolled it over to an
Yes.> IRA and then withdrawn it without penalty? - quote - > If so, why is this allowed from an IRA but not a 401k?
Good question. Ask your Congresscritter -- they wrotethe law. -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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04-08-2004, 07:05 PM
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| Re: Early Distribution and First Home Purchase "jgd42" <jgd42-tat[at]yahoo.com> writes: - quote - > Last year I took an early distribution from my 401k to
Not enough, evidently> purchase my first house. I had done some research before > doing so - quote - > and was under the impression that because it was
Yes> for my first home, I would be exempt from the 10% penalty. I > did not advise a tax accountant and I now wish I had. > It looks like I cannot take this exception because it was > not an IRA. Is this true? - quote - > Could I have rolled it over to an
Possibly. You don't give enough information about your> IRA and then withdrawn it without penalty? employment status with the 401(k) sponsor, but had the distribution come from an IRA the penalty would not apply. - quote - > If so, why is this allowed from an IRA but not a 401k?
Because Congress is the mommy and Congress says so.Phil Marti Topeka, KS << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
04-07-2004, 10:06 AM
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| Early Distribution and First Home Purchase Last year I took an early distribution from my 401k to purchase my first house. I had done some research before doing so and was under the impression that because it was for my first home, I would be exempt from the 10% penalty. I did not advise a tax accountant and I now wish I had. It looks like I cannot take this exception because it was not an IRA. Is this true? Could I have rolled it over to an IRA and then withdrawn it without penalty? If so, why is this allowed from an IRA but not a 401k? Thanks for your help in advance. Joe << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| distribution, early, home, purchase |
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