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    debra kohl's Avatar
    debra kohl Posts: 1, Reputation: 1
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    #1

    Mar 11, 2009, 02:06 PM
    Early withdrawal of 401k
    Have feds decided to waive the 10% penalty for early withdrawal of 401k funds for paying off home mortgages?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Mar 11, 2009, 02:24 PM

    No. The same rules still apply. As a presidential candidate Obama proposed letting people tap into 15% of their 401(k) account balance up to $10K without the 10% early withdrawal penalty, but nothing concrete has come of it. McCain proposed relaxing the rules requiring mandatory distributions for people 70-1/2 and older, and also reducing the tax rates on withdrawals, but of course that hasn't happened either.
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