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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Can I use my 401K toward a mortgage or purchase of condominium/real

Resolved Question:

Can I use my 401K toward a mortgage or purchase of condominium/real estate
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.
Hello center,

If you are still currently working, you may qualify for a hardship withdrawal from your 401k plan if the proceeds are being used to purchase.   Your employer's plan must allow for these types of hardship withdrawals.

However, even if your plan does allow this type of withdrawal, you will still owe tax on the withdrawal which is made. In addition, if you are under the age of 59-1/2, the 10% early withdrawal penalty would also still apply.

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Thank youCustomer

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