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Can I take more than 10K out? What if I wanted to take out 30K? Also, if I only took out 10k, would I have to roll that into a roth IRA first or is that not necessary? Please advise as I was under the impression that I could take up to 10k out and with no penalty for doing so, that it would be taxed as ordinary income, but that I first had to roll it over into a Roth IRA. Please confim.
Another expert here.
First, you can only take a withdrawal from the 401(k) if the provisions of the plan permit a withdrawal (such as hardship withdrawals or in-service withdrawals). If the plan does not permit these types of withdrawals and you are still employed with the employer sponsoring the plan then you will not be able to take a distribution.
Second, the exception to the 10% penalty tax for a first time home purchase does not apply to distributions from a 401(k) (this exception is only available for withdrawals from IRAs). See this IRS link - http://www.irs.gov/taxtopics/tc558.html
So what if I wanted to pull out 20K from my 401K to use on for a first time home purchase? explain how I would go about doing that? Would I have to first roll it all over into an Roth IRA? I was told that for a first time home buyer I could pull up to 10k out without penalty, but it would be taxed as regular income. The additional 10k I wanted would be subject to the 10% penalty fee plus the taxes as it is treated as income. Please help...
ok, so if I wanted to take out 30k from my 401k, assuming that my plan allows me to do so, then I would pay a 10% penalty of 3000, plus pay taxes on 30K as income. Is this correct? And, is there any restriction on how much money I can pull out. Please advise.