JennyRake1
Level 1
03-09-2022
02:36 PM
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I have a client who withdrew $150,000 from his 401k to buy his primary residence. He is not a first-time home buyer but he is a publice service employee who turned 51 in 2021. Is he subject to the early withdrawal penalty? From my understanding, he would be exempt if he had retired or been separated from service.
qbteachmt
Level 15
03-09-2022
02:47 PM
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You might want to bookmark this table:
You have a hardship approval, that is up to the plan administrator. That's not an IRS issue.
Now, read this:
https://www.investopedia.com/ask/answers/081815/can-i-take-my-401k-buy-house.asp
Homebuyer has no provision, and neither is being over 50 while still working there.
It's all completely taxable + penalty.
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