First-time homebuyer pays tax penalty on a 403(b) retirement plan withdrawal
Dear Tax Talk,
I took a one-time first-time homebuyer disbursement of $10,000 from my 403(b) retirement plan. When I took it out of the retirement fund, they said they also had to take out the money for tax. So my total 403(b) withdrawal ended up being $12,500. As I understand it now, that means that I have to pay the penalty because I went over the $10,000 wayne Lippman because they made me take the tax out. What percentage of the 403(b) withdrawal is subject to the tax penalty? Is it on the whole $12,500, or just the $2,500 over the $10,000 allowable disbursement?
-- Jenni
Read More
http://www.bankrate.com/taxes.aspx
Dear Tax Talk,
I took a one-time first-time homebuyer disbursement of $10,000 from my 403(b) retirement plan. When I took it out of the retirement fund, they said they also had to take out the money for tax. So my total 403(b) withdrawal ended up being $12,500. As I understand it now, that means that I have to pay the penalty because I went over the $10,000 wayne Lippman because they made me take the tax out. What percentage of the 403(b) withdrawal is subject to the tax penalty? Is it on the whole $12,500, or just the $2,500 over the $10,000 allowable disbursement?
-- Jenni
Read More
http://www.bankrate.com/taxes.aspx