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Author: huskersn01 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121594  
Subject: 401K distribution to purchase a home Date: 7/23/2001 4:41 PM
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From what I have read, an early withdrawl from an IRA can be exempt from the 10% early withdral penalty if used as qualifying expenses for puchasing a home (up to $10,000). I have also read, 401k plans are not subject to this exemption. My question is can the 401k be rolled over into a self-directed IRA and then once the IRA is established and funded, withdraw the money to purchase a home thus using this tax benefit? Are there other consequences for doing this? Does the 10% penalty still then apply to any withdraw exceeding $10,000?

Thanks.

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