401k Withdrawal for Home Purchase - MSFT

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 Has anyone at Microsoft withdrawn 10k from their 401k account with fidelity for a home purchase?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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PayPal Bulldoze! Apr 13, 2018

Call your 401k broker bro

AT&T DDM2K Apr 13, 2018

Proceed with Rollover/Withdrawal, select Withdrawal, and you should then see the two options for hardship withdrawal or home purchase

Micro Focus bFWq68 Apr 13, 2018

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.

AT&T DDM2K Apr 13, 2018

Or this. It’s not taxed as income because you pay it back with after tax dollars.

Amazon n0v Apr 13, 2018

But the interest you pay back is after tax, and that portion is taxed again (double taxation) at withdrawal.

Microsoft rqNt00 Apr 13, 2018

If you leave / lose MSFT job you need to pay the loan back to 401k ASAP, keep that in mind

Microsoft kirQ54 Apr 13, 2018

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.

Microsoft getaroom Apr 14, 2018

MS plan does require u to pay it back in 30 days.

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KW Realtor Apr 13, 2018

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..

Microsoft Kskdnn Apr 13, 2018

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?

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KW Realtor Apr 13, 2018

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

Oracle Marx Herd Apr 13, 2018

And you probably cannot contribute into the 401k while your loan from it is outstanding I guess?

Microsoft kirQ54 Apr 13, 2018

False. You can make any contributions you want, as long as you make the min loan payment.

Microsoft yourfriend Apr 13, 2018

Withdrawals from 401k for primary residence are not penalized by Fidelity but by IRS. True story

Microsoft kirQ54 Apr 13, 2018

This is true because you are paying back pretax dollars with after tax dollars.

Google secluded Apr 13, 2018

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.

Juniper shitposter Apr 13, 2018

no 10% penalty, but taxed as income. and it's gonna cover a month's mortgage at best. 😂