ajuroff Posted March 5, 2009 Report Share Posted March 5, 2009 Clients have been "buying" home on land contract. Home was in mother's name until this year...factory client worked at closed and client took out 401K and paid off land contract with mother. House is now in client's name. Exception to the 10% penalty? I'm thinking no. Quote Link to comment Share on other sites More sharing options...
lsowers Posted March 6, 2009 Report Share Posted March 6, 2009 Code Sec 72(t) does not allow a first-time homebuyer exception for a distribution from a 401(k). It only allows for a distribution from an IRA. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 6, 2009 Report Share Posted March 6, 2009 Code Sec 72(t) does not allow a first-time homebuyer exception for a distribution from a 401(k). It only allows for a distribution from an IRA. That has always been the case, hasn't it? Quote Link to comment Share on other sites More sharing options...
ajuroff Posted March 6, 2009 Author Report Share Posted March 6, 2009 Yep, and I knew that. Been reading too much and have done a lot of "ugly" returns this year. Lots of factories closing in this area....etc. Thanks for setting my mind straight. Quote Link to comment Share on other sites More sharing options...
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