August 27, 2019

401(k) distribution for first-time home purchase subject to 10% additional tax

The Tax Courts have found that a 401(k) distribution used for a first-time home purchase was subject to a 10% additional tax because the exception to the additional tax for first-time home purchases only applies to distributions from IRAs. Distributions from qualified retirement plans are subject to a 10% additional tax, unless an exception applies. […]