is 401k considered IRA for tax purposes
Early Withdrawals. IRAs and 401k plans have different early withdrawal requirements to avoid the 10 percent early withdrawal tax penalty, imposed on most withdrawals before age 59-1/2, that must be reported when you file your income taxes.owever, you can only avoid the early withdrawal penalty for college expenses or a first time home purchase with an IRA withdrawal. For only 401k plans, you can avoid the tax penalty if you retire after turning 55.