401k hardship question for mortgage

[adjusterjack]

Dont they take out the 10% off the top anyway for early withdrawl or is that another 10 percent that gets paid when taxes are due

Depends. When you take the distribution you may be able to take the whole amount or you may be able to have part of it sent to the IRS. Check your plan to see what your options are.

Keep in mind that if you take the whole amount you could be adding a very painful amount to your tax bill next April, maybe a thousand or two and be faced with a penalty for under withholding.

 

[Scottfamily26]

Depends. When you take the distribution you may be able to take the whole amount or you may be able to have part of it sent to the IRS. Check your plan to see what your options are.

Keep in mind that if you take the whole amount you could be adding a very painful amount to your tax bill next April, maybe a thousand or two and be faced with a penalty for under withholding.

My plan allows me to have the early withdrawal taken out before sent to me as well as have a tax percentage taken out of it

 

[cbg]

Does your plan allow for loans and if so, do you qualify?

While the purchase of your primary residence is one of the very few things for which you can legally take a hardship withdrawal, a loan is usually less restrictive, does not come with a penalty, and can be paid back gradually over time.