The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: 401K Rollover to IRA then Purchase Home Date:  11/3/1999  12:05 PM
Author:  TMFPixy Number:  15070 of 91095

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 Therefore, up to the $10K lifetime limit may be withdrawn without penalty to pay the expenses of a first-time home purchase.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.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us