Re: Can I use my 401k to help me purchase my dream home?
09-22-2012 07:58 PM
it depends on your plan -- review your plan documents and ask your plan administrator.
With mine, I cannot withdraw unless 1) there's a hardship (which is really not the case here; and 2) I take a loan from it first. Even then, there would be a tax penalty. I can (and may) take a loan from it, but the catch is that if I were to change jobs, I might have to pay the loan back in full. Very risky.
Yours may be different. Some Roth 401ks, for example, will allow you to withdraw an amount for a house downpayment without penalty. But again, you need to check your plan documentation.