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Asked 1/15/2010

401k withdrawal to buy a home

Can I withdraw money from my 401k to use as a down payment on a home

 
 
 
 
 
Answers

Answer 1/3 - Submitted 1/15/2010

If its your first home , you can avoid the 10% penalty , but
you still need to pay ordinary income taxes on the withdraw.

 
 

Answer 2/3 - Submitted 1/16/2010

You can withdraw 401K funds for the purchase of a home as long as it will be your primary residence.

 
 

Answer 3/3 - Submitted 1/16/2010

Sure you can!

Be prepared to pay income tax and a 10% early distribution penalty if you're under age 59 1/2.

Buying a first home is NOT an exception to the penalty for a 401(k), only for an IRA.

 
 
 
 
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