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

By: mister ed

mister ed — Sat, 21 Nov 2009 05:00:17 +0000

yes!!!

By: STEVEN F

STEVEN F — Fri, 20 Nov 2009 16:21:01 +0000

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.

By: strawberrykisses72

strawberrykisses72 — Tue, 17 Nov 2009 15:57:23 +0000

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.