401k Withdrawal for Home Purchase - MSFT

Microsoft BLzs55
Apr 13, 2018 19 Comments

Hi! Has anyone at Microsoft withdrawn 10k from their 401k account with fidelity for a home purchase? This is supposed to be a non-penalized withdrawal. I’m not finding a way to do that online and was looking for advice

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TOP 19 Comments
  • Micro Focus / Product
    bFWq68

    Micro Focus Product

    PRE
    HPE
    bFWq68more
    Better way is to take a loan from 401k rather than withdrawal. It is a straightforward process and you can repay it back at your convenience. There is an interest component but you are paying that to yourself so should not matter.
    Apr 13, 2018 4
    • AT&T / Eng
      DDM2K

      AT&T Eng

      PRE
      Optum, Windstream, AT&T, Verizon
      DDM2Kmore
      Or this. It’s not taxed as income because you pay it back with after tax dollars.
      Apr 13, 2018
    • Amazon / Eng n0v
      But the interest you pay back is after tax, and that portion is taxed again (double taxation) at withdrawal.
      Apr 13, 2018
    • Definitely this.
      You become your own “bank” in a way and your interest goes back into your account as you’re paying yourself. Minimal set up fee too!
      Apr 13, 2018
    • AT&T / Eng
      DDM2K

      AT&T Eng

      PRE
      Optum, Windstream, AT&T, Verizon
      DDM2Kmore
      Loan is only taxed if you default on yourself
      Apr 13, 2018
  • PayPal Bulldoze!
    Call your 401k broker bro
    Apr 13, 2018 0
  • Microsoft rqNt00
    If you leave / lose MSFT job you need to pay the loan back to 401k ASAP, keep that in mind
    Apr 13, 2018 2
    • Microsoft kirQ54
      This is different depending on the deatils of each companies plan. I believe Microsoft's plan does not actually require immediate pay back if you leave but be sure to read all of the fine print to be sure.
      Apr 13, 2018
    • Microsoft getaroom
      MS plan does require u to pay it back in 30 days.
      Apr 14, 2018
  • Microsoft yourfriend
    Withdrawals from 401k for primary residence are not penalized by Fidelity but by IRS. True story
    Apr 13, 2018 1
    • Microsoft kirQ54
      This is true because you are paying back pretax dollars with after tax dollars.
      Apr 13, 2018
  • Oracle Marx Herd
    And you probably cannot contribute into the 401k while your loan from it is outstanding I guess?
    Apr 13, 2018 1
    • Microsoft kirQ54
      False. You can make any contributions you want, as long as you make the min loan payment.
      Apr 13, 2018
  • Microsoft / Eng
    Kskdnn

    Microsoft Eng

    BIO
    Hate coding quizzes but studying hard for better future!
    Kskdnnmore
    What if I left Microsoft for new job but still have lots of money in 401k with Fidelity? Can I sill borrow it from there for home purchase?
    Apr 13, 2018 1
    • New / Other
      KW Realtor

      New Other

      BIO
      Keller Williams Realtor
      KW Realtormore
      The amount of money you have in your 401k may change from when you still work there and when you leaving. That is all dependent on your vesting policy. If you’re still working there then you can borrow and pay back. Or withdraw for down payment. ... once you leave will need to withdraw.. pay taxes but not the penalty
      Apr 13, 2018
  • Juniper / Ops shitposter
    no 10% penalty, but taxed as income. and it's gonna cover a month's mortgage at best. 😂
    Apr 13, 2018 0
  • Google secluded
    You can take a loan against 401k. Since you will be borrowing money from yourself, you will be paying yourself back. Also 401k loans for home purchase are long term loans. So you have like 15 yrs to pay back.
    Apr 13, 2018 0
  • New / Other
    KW Realtor

    New Other

    BIO
    Keller Williams Realtor
    KW Realtormore
    I took out money from fidelity as well.. just call them and let them know that you need the money for a home purchase. At the end of the year your tax accountant will need documents from the purchase of the house and year end tax report from fidelity. You will not be penalized but still taxed..
    Apr 13, 2018 0
  • AT&T / Eng
    DDM2K

    AT&T Eng

    PRE
    Optum, Windstream, AT&T, Verizon
    DDM2Kmore
    Proceed with Rollover/Withdrawal, select Withdrawal, and you should then see the two options for hardship withdrawal or home purchase
    Apr 13, 2018 0

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