Originally Posted by
cheachea123
How do I cash this out without the penalties? Who do I contact to make sure this goes directly to the purchase of my home?
You can't. Even if the plan permits withdrawals, you will still incur the 10% penalty and you will have to pay taxes on the income.
Originally Posted by
cheachea123
Before people get on me for cashing out, I have another 401K with more money from my newer job, and many stock options I invest in. I can afford to cash this little one out. Im 26, Im sure Ill be ok. I just dont have the time to save enough money up, without losing this dream house I want.
While I agree you may be able to afford the penalties, do you really want to throw away 30-50% of what you have saved? Because that's what is going to happen if you cash out the old 401K.
Does your current plan include a loan feature? If so, I would roll the old plan into the current one, then take a loan against it for the downpayment. The full loan repayment goes back into your 401K so this would satisfy your need to get the money for your downpayment and still give you time to save the money.