If you're considering using funds from your
retirement plan to build a home, understand the tax rules. You may use up to
$10,000 of your IRA per person to purchase a first home and avoid paying the 10
percent early withdrawal penalty. If these same funds are pulled out of a
401(k) plan you could be subject to an additional federal tax of up to $1,000.
Roll the funds to a traditional IRA first and save the tax. Contact our office
at (518) 798-3330 if you have questions about tax penalties and your retirement plan.