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    homebuyer41's Avatar
    homebuyer41 Posts: 1, Reputation: 1
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    #1

    Jun 6, 2007, 05:05 PM
    401 k early withdrawal penalty - first time home purchase
    I took out a portion of my 401k to go towards the purchase of a new home. Although this is my first purchase, I did put my name on refinance paper when my husband and I decided to refinance his home 2 years ago (he purchased before we met). Since I put my name on the refinance papers is that considered my first home purchase? I am asking because if it does not count than I believe I qualify for tax exemption on this early withdrawal (first time home purchase) for our new home. Can someone help me with this?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Jun 7, 2007, 09:04 AM
    If you did not ACTUALLY buy the home, then it is not a first purchase.

    However, you are operating under the assumption that you can withdraw 401K money penalty-free for the first-time purchase of a home. THAT IS NOT TRUE!

    You can only withdraw IRA money penalty-free for the first-time purchase of a home.
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