Is purchasing a home a qualifying expense to withraw retirement savings early? Where can I find more info?

Public Comments

1. You must check with the company that handles your retirement account. If it is a 401(k) account, you can usually take a loan of up to 50% of it.
2. Yes, you can withdraw funds from your 401(k) for a first-time home purchase; you will pay a 10% fee. You may be able to roll the money from the 401(k) distribution into an Individual Retirement Arrangement (IRA). Once in a lifetime, you can withdraw up to $10,000 from an IRA to buy a primary home for yourself or for a family member. You won't have to pay the 10% early withdrawal penalty on the IRA, but you will have to pay ordinary income taxes on the amount that you withdraw. You must complete the rollover within 60 days of receiving the funds. Your plan administrator can tell you if the 401(k) distribution is eligible to be rolled over into an IRA.
3. You can do it with a ROTH IRA if it's held for 5 or more years. The dividends will not be taxable. But the only time you can make a withdrawal from a TRADITIONAL IRA without being penalized is if: 1. Your'e disabled 2. You're paying for certain health insurance, medical expenses, & higher eduacational expenses. 3. You're 59 1/2 years of age 4. Death
4. No, many homes loans can be done with little or no money down. Why take your retirement? You'll be glad you have the retirement money when you need it!