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Updated over 7 years ago on . Most recent reply

User Stats

6
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4
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Ken Byers
  • Olyphant, PA
4
Votes |
6
Posts

Writing off tax penalty from retirement withdrawal

Ken Byers
  • Olyphant, PA
Posted

Good morning everyone, this is my first Bigger Pockets post and I'll make it short and sweet. 

I was a Federal Employee for 7 years. I was in the Thirft Savings Plan (TSP) which is equivalent to a 401K. I have approximately 29k in my account. If I were to do a full withdrawal, I would have 20% in federal tax withholding and 10% penalty.

My question is, if I use this money to invest in my first property (a house-hack) could I write off the penalty and maybe even some of the federal withholding? 

Thank you, Ken 

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