When I retire at 62 I plan to buy a house (I have never owned a home before) At that time I plan to take reduced social security and will not get a pension until I am 65year old. I plan to either pay for the house in full or put a large down payment to keep down monthly payments. I will take this money out of my 401K. After this withdrawal for my home there is not much left, as far as savings or earning potential. Tax is the question--how much or what would the taxes on the 401K money be based on. Are there any breaks for a first time house buyer?