Can I use a 401(k) withdrawal to buy a house without a penalty?

Question

Accepted Answer

In most cases, you’ll be charged taxes and a 10% penalty for an early withdrawal from your 401(k). However, depending on the terms of your plan, it’s possible to qualify for a hardship withdrawal if you can prove you’ve faced legitimate financial hardship. Alternatively, you can consider a 401(k) loan, which doesn’t come with penalties, but you must pay the money back with interest.