Can You Use Your 401(k)/IRA to Buy a Home?... [Here’s What You Need to Know]
Sep 30, 20248m 45s33.2K viewsScore 75
Regulations & Compliance
intermediate
401k withdrawal
IRA withdrawal
home down payment
penalty-free withdrawal
hardship distribution
M
Summary
AI-generatedLearn how to access your 401(k) or IRA funds penalty-free for a home down payment. This guide clarifies the distinct rules for IRAs and 401(k)s, including specific forms and exceptions to avoid penalties and taxes.
Key insights
A 401(k) participant loan does not count towards your debt-to-income ratio when applying for a mortgage.
Mistakes to avoid
Failing to repay a 401(k) loan can result in the outstanding balance being treated as a taxable distribution, potentially incurring penalties and taxes.
Tools & resources
Directed IRAservice
Directed IRA offers services related to self-directed IRAs for real estate investments.
Frequently Asked Questions
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial