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URL:  http://boards.fool.com/greetings-jmgee-and-welcome-you-asked-11461837.aspx

Subject:  Re: 401K Rollover to IRA then Purchase Home Date:  11/3/1999  12:05 PM
Author:  TMFPixy Number:  15070 of 86410

Greetings, JMGee, and welcome. You asked:

<<If my friend rolls over his 401k money, then withdraws it to buy his home (say for a downpayment), will the 10% penalty for early withdrawal apply or not?>>

When the money hits the IRA, it is subject to IRA rules. Therefore, up to the $10K lifetime limit may be withdrawn without penalty to pay the expenses of a first-time home purchase. Income taxes will be due on such a withdrawal, though.

Regards..Pixy
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