first of all, a house purchase does no longer qualify as a difficulty, so no in-service distribution out of your 401(ok) will be plausible. If the plan helps an in-service distribution for a house purchase -- and albeit i have not in any respect seen one which does -- you nonetheless owe the taxes and 10% penalty on the distribution. If it does no longer enable an in-service distribution for purchase of a house then you quite ought to end your interest to take the distribution. The tax withholding is 20%, no longer 10%. considering your entire tax including the ten% penalty will be 35% utilising your numbers, you need to go back up with the different 15% elsewhere, both from over-withholding out of your wages or pay up once you report your go back next 3 hundred and sixty 5 days. in the adventure that they in trouble-free terms withheld 10%, you'll ought to go back up with 25%.