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About Glenn D Schnabel
Expertise
I can answer most federal individual income tax questions. I can not provide legal advise.

Experience
I have worked for a CPA firm for over 11 years. I have worked in private as well as government I have recently been running a tax preparation office, mainly focusing on individual income taxes

Organizations
I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.

Education/Credentials
I have my B.S.B.A in Business Administration . Concentration in Accounting I have gone to yearly tax seminars and have tried to keep up with the evolving tax changes

Awards and Honors
Over my years I have received local awards for contributions to worthy organizations.

Past/Present Clients
This, of course remains confidential

You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Primary Residence Qualifications

Tax Law (Questions About Taxes) - Primary Residence Qualifications

Expert: Glenn D Schnabel - 6/27/2009

Question
I am interested in purchasing some land to eventually build a house for retirement. I would like to withdrawal the down payment and money to clear the land for preparation. My 401k provider will allow the withdrawal under the primary residence criteria but said I would be responsible for any potential IRS issues. Since I will not live there yet but will visit and start to build on it can I withdrawal my money out of the 401k without additional penalties from the IRS?
Carl

Answer
Carl,

Refer to link below:

http://www.axa-equitable.com/retirement/borrowing-or-withdrawing-money-from-your...

You may want to borrow the money then risk drawing the funds out and
being subject to a 10% penalty and pick up the distribution as ordinary
income.

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