I have a 401k from my last employer. I am rolling it over to my new employer's 401k program (directly from Principal to Prudential).
If I do an FHA loan (instead of USDA, which is my other option), I may use some of the funds for my down payment. Do I need to keep anything in mind when I roll the funds over? Will it complicate anything, or will I just need to show where the funds come from and that they're properly aged?
Just making sure all of my ducks are in a row 
@Juniper117 wrote:I have a 401k from my last employer. I am rolling it over to my new employer's 401k program (directly from Principal to Prudential).
If I do an FHA loan (instead of USDA, which is my other option), I may use some of the funds for my down payment. Do I need to keep anything in mind when I roll the funds over? Will it complicate anything, or will I just need to show where the funds come from and that they're properly aged?
Just making sure all of my ducks are in a row
Are you planning on taking a 401(k) loan, or taking an early distribution to cover the costs of your loan?
I've only rolled over a 401(k) once, but I had to put it into a rollover IRA. That is, it couldn't be put into the 401(k) of my subsequent employer. Since it's now an IRA, I can't take loans from it.
If you are taking a loan from your old plan, you might have to pay it back in full before being able to roll it into your new plan. I don't know this for certain, but for me I couldn't have any open loans. Check with the benefits administrator of your current plan.
If you are taking an early distribution, which shouldn't be subject to penalties but will be subject to income tax, then I don't think it matters when it comes time to take the distribution from your new plan. However, you might need to be able to demonstrate how much of those funds came from your contributions, because I don't think you can receive any earnings from your 401(k), only your own contributions. Better check the IRS site. If there are employer matching contributions, those might be distributable, but I think that's dependent on the rules of the individual plans.
