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Frequently Asked Question

Can I withdraw funds penalty free from my 401k plan to purchase my first home?

Answer: If you are under the age of 59 1/2, you cannot withdraw funds from your 401k plan to purchase your first home without being subject to a 10 percent additional tax on this early distributions (called a hardship withdrawal). However, depending on the rules for your 401k plan, you may be able to borrow money from your 401k to purchase your first home. Your plan administrator will have information about your particular plan that explains when you can borrow funds from your 401k plan as well as other plan rules.

This is for educational purposes only. 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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