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    chadnMI's Avatar
    chadnMI Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 14, 2008, 09:14 PM
    401k distribution $58,000
    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
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Apr 14, 2008, 10:13 PM
    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.
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