I was recently told that you can take out of the 401k for a first time home buyer. Is that the case?
IINM there are different loan provisions (depending on your plan). A regular loan has a maximum term of 5 years, while (IINM) a loan for a home purchase has a maximum term of 10 years.
Gotta check your plan details but generally buying a house is considered a hardship and yes, you could make a withdrawal. A few things to remember 1)you will have to pay taxes (and probably some fees) on the amount withdrawn 2)there is probably a penalty period where you wont be able to contribute anything (my company has a 6 month penalty period) 3) you could only withdraw money that you contributed, not money that ur employer contributed or profits.
- 1/3 (at least)
I am not familiar with hardship withdrawals, but I just took withdrawals from my 401k (to roll over into an IRA, and then convert to a ROTH). My plan had no fees on the withdrawals. There was no change to my ability to make contributions. I don't know about hardship withdrawals, but for regular in-service (i.e. while still employed) withdrawals, the amounts available for withdrawal are only Vested Employer contributions, and amounts attributable to funds rolled over into the plan.