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Author: FoolStreet Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 125005  
Subject: 401k withdrawal to buy 1st house Date: 10/20/2001 5:04 PM
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Hi, I did a search on this board and I couldn't find what I was looking for.

My 401k plan states that I can withdraw a certain amount from my 401k for an eligible hardship withdrawal. I believe a 1st time home is an eligible hardship withdrawal. My question is whether or not that hardship withdrawal will receive a 10% penalty tax or not. I would like to think that it won't receive the penalty.

Can someone please confirm whether the 10% penalty will apply or not? (and for the record's sake, I'm really not interested in doing some machinations like rolling some $ to an IRA to be able to take the $ out)

BW and I really doubt that we would use 401K money for a home downpayment, but with silicon valley house prices as they are, I'd rather know all my options.

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