Can money from a 401k loan for a first time home go towards a down payment AND closing costs?

Posted by Dolores
Donna S asked:


I know I can use a loan from my 401k towards the down payment. If I have some money left over from the 401k after that, can I use the rest for the closing costs?

Kansieo.com
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This entry was posted on Tuesday, November 17th, 2009 at 1:57 am and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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3 Responses to “Can money from a 401k loan for a first time home go towards a down payment AND closing costs?”

  1. strawberrykisses72 Says:
    November 17th, 2009 at 10:57 am

    401K

    That is one of the legit reasons 401k can be touched. Yes you can use any monies remaining for closing cost. The check should come in your name anyway.

  2. STEVEN F Says:
    November 20th, 2009 at 11:21 am

    Caffeinated Content

    If you took the money as a LOAN from your 401(k), you can use it ANY way you wish. If you WITHDREW the money from your 401(k), you WILL pay FEDERAL income tax on the FULL amount. I don’t know if there is an exception from the 10% early withdraw penalty for home purchases.

  3. mister ed Says:
    November 21st, 2009 at 12:00 am

    Website content

    yes!!!