Regular Contributor
Posts: 169
Registered: ‎03-29-2012
Re: Can I use my 401k to help me purchase my dream home?

Pool_Shark wrote:

From the research I've done I do not believe you can withdraw from your 401k without significant tax penalties.  The first time homebuyers exemption is for IRAs not the 401k program.  You most likely can borrow against your 401k without penalty.


Wrong, all hardship withdrawls approved by your benefits management will be straight taxed at 10%.  If you take the money out and do not use it for its purpose(when you do your taxes don't have the new address listed as your primary), you will be penalized an additional 10% and the money will be taxed accordingly to your bracket

 


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