I withdraw $58,000 out of my 401k for a first time home buyer. Only to find out that that rule applies to IRA's. Michigan taxes me at around 4% on my income and the $58,000. It appears that I can write off the $58,000 on schedule 1 against my income for Michigan tax purposes. Is that the case?? Thanks.

Chad

Check with your plan administrator. Withdrawal from 401K, even for first time home buyer, is subject to 10% early withdrawal penalty and the amount will be taxed as your regular income. Many plans allow loan against your 401K to first time home buyers.