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February 26, 2024
Question

Can you select 'other reason' for 401k early withdraw for hardship when used for buying home?

  • February 26, 2024
  • 1 reply
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1 reply

DoninGA
Employee
February 26, 2024

No.  Buying a home is not an exception to the early distribution penalty when the funds were distributed from a 401(k) account. 

There is an exception for the penalty for the purchase of a first home if the funds were distributed from an IRA only.