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    barbarawilliams's Avatar
    barbarawilliams Posts: 1, Reputation: 1
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    #1

    Jun 12, 2011, 03:11 PM
    401k from former job used for new primary residence
    I have quit my job of 22 years. My family and I are relocating to a different state. I would like to use my 401k toward the purchase of a new primary residence until my current home sales. Then I would have my 401k money to pay back into a different retirement plan, depending on my next employers. Is this possible withour being penalized?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Jun 12, 2011, 03:17 PM

    Have you looked into a loan from the account.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Jun 12, 2011, 04:55 PM

    IF and that's an unlikely IF, you can deposit the withdrawn amount into a rollover IRA within 60 days of distribution, you could do this. Otherwise, once the 60 days are up, you will be responsible for interest and penalties. Also, you will be limited on what you can contribute to IRAs.

    A loan is probably not going to work since you are not longer employed by the company. You might be better off with a personal loan that you can pay off with a loan against the 401K AFTER you roll it over into a new company plan.
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