Help for 401k plan sponsors, retirement professionals, small business, employee and 401k rules


Definitions
Glossary of Terms
Retirement Industry Acronyms and Abbreviations

Frequently Asked Question

Can you use 401k assets to purchase a home without an early withdrawal penalty?

There are two general methods of getting funds from a 401k for the purchase of a home: (1) Loan -- no income tax or penalty, or (2) hardship withdrawal -- income tax and penalty will be owed.

Here are two links that give you full details on both of these methods:

http://www.401khelpcenter.com/loans.html
http://www.401khelpcenter.com/hardships.html

The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.

 


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