I was told several years back that there is no penalty for cashing out 401K account if using it to purchase a first home. Is this accurate?
2007-02-23 05:29:54 · 5 answers · asked by Tami W 1 in Business & Finance ➔ Taxes ➔ United States
No
2007-02-23 05:44:58 · answer #1 · answered by Anonymous · 1⤊ 1⤋
fool in the rain is exactly right....no penalty for withdrawal for first home purchase in an IRA but that exception does not apply for 401k withdrawals. Sorry, 10% penalty still applys.
2007-02-25 06:28:17 · answer #2 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
I want to correct the guy above me. You can withdraw from an IRA with no penalty if you are a first time homebuyer. Contrary to what your employer tells you, withdrawals from a 401k to put as a down payment for a home DOES NOT keep you from paying the early withdrawal penalty. Sorry.
2007-02-23 06:22:32 · answer #3 · answered by Fool in the Rain 6 · 2⤊ 2⤋
No it isn't accurate.
2007-02-24 15:03:03 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
is not safe to have so much cash and you can operate so easy with it.
2007-02-23 05:38:27 · answer #5 · answered by Vlado 4 · 0⤊ 4⤋