Cash Plus Money Loan - Don't Tap Your 401(k) for a Down Payment - Washington Post
Even though you may be allowed to take a hardship withdrawal from a 401(k) to pay for a down payment on your main home, it isn’t a good idea — as you’ve discovered. You could have avoided the penalties and taxes — at least for a while — by borrowing the money from your 401(k) instead of withdrawing it. Even if you can access any of this money for a down payment, it’s generally better to search for other sources of cash — and keep the funds growing in the account for your retirement. For an update on down payment requirements and assistance, see An Open Door for First-Time Home Buyers . For more information about buying a home, see the Home Buyer’s Survival Kit . Find Out More
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