Using 401K Money To Buy A House

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Can you use 401k assets to purchase a home without an early. – 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.

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Using My 401k to Buy a House – Good Idea or Bad? – Yes, it’s possible to use your 401k to buy a house (in this case for down-payment purposes). But you might have to pay taxes and penalties on the early withdrawal.. So you will most likely pay a penalty by withdrawing money from your 401k early — to buy a house, or for any other purpose.

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