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    philie32's Avatar
    philie32 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 30, 2006, 08:45 PM
    401k penalty
    First time homebuying classifies for the non pentalty right? How do they tax, before you receive it or add it to your yearly income come tax time.
    RickJ's Avatar
    RickJ Posts: 7,762, Reputation: 864
    Uber Member
    		  
    #2

    Aug 31, 2006, 03:34 AM
    It is not true. It IS true with an IRA but not with 401k. Check with your employer about borrowing from it.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Aug 31, 2006, 06:55 AM
    As Rick says, its not true. Homebuying does NOT qualify as a hardship withdrawal for 401(ks). Taking a loan against your 401(k) is a MUCH better option.
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