401k question

OKLABob

Well-Known Member
My wife and I are building a house and need to come up with a pretty penny for closing cost down payment I don’t think I’ll need to but if I absolutely had to is there anyway to pull money out of my 401k?
 
My wife and I are building a house and need to come up with a pretty penny for closing cost down payment I don’t think I’ll need to but if I absolutely had to is there anyway to pull money out of my 401k?
You can take a loan but the bank won't approve you for the loan if they know you borrowed the money from your 401k
 

Jkloc420

Well-Known Member
My wife and I are building a house and need to come up with a pretty penny for closing cost down payment I don’t think I’ll need to but if I absolutely had to is there anyway to pull money out of my 401k?
yes, you can request money for your first house purchase, you just have to copy and send in your stuff with the proper forms
 

OKLABob

Well-Known Member
How do I go about doing it? And do they penalize you a ton? I’m sure it’ll mess with my taxes as well.
 

UnconTROLLed

perfection
How do I go about doing it? And do they penalize you a ton? I’m sure it’ll mess with my taxes as well.
Call the # on the website. They will mail or email you forms to fill out to apply, and they will want to see proof. The penalties aren't bad and you can decide the amount of time you want to pay it back through deductions.

I don't agree with it unless your note will be a small % of your balance. I suggest saving your money. I'm glad to NOT have used my 401k for a down payment or closing, personally...worked out well.
 

OKLABob

Well-Known Member
Im 23 with just a little over 2 years full time I started when I was 18 so it’s not like I’ve got a fortune in my 401k and I more than likely won’t even use it but it will be a last resort if it boils down to that. I appreciate all the answers guys.
 
Im 23 with just a little over 2 years full time I started when I was 18 so it’s not like I’ve got a fortune in my 401k and I more than likely won’t even use it but it will be a last resort if it boils down to that. I appreciate all the answers guys.
You can borrow up to $50,000 but it can't exceed half of your balance.
 
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