401k Hardship Withdrawal - can I use it for next year?

Question

I have taken a hardship withdrawal from my 401k pension account, after I provided documentation that I am in agreement with a bank that I will buy a forclosed home. The deal didn't happen so I ended up with the 401k money into my account.

I called my 401k administrator jpMorgan and they told me that I can't put the money back into the account.

I don't want to pay huge taxes for those money, I am looking to buy a home this year but if I will not buy this year can I use it to buy a home next year and not declare it next year? I really don't want to pay the big taxes and penalties. Is there any way I can put those money back into my 401k account?

Thank you.

Answer 1

You'll be paying the taxes and penalties whether you buy a home this year or not.  And you'll get a 1099-R for the withdrawal, and have to claim it in the year it was withdrawn.

There is a limited exemption for IRA's from paying the penalty if the money is used for a first house, but not from 401K's.  The hardship provision just let you take it out at all, without quitting your job.