Is there a limit to how much you can withdrawl from you 401k for the down payment on your first home?

I know it is under the "hardship" clause and Fidelity knuckleads told me $10k per person, but I cannot find any confirmation of this limit. Pls advise.|||Fidelity are a bunch of knuckleheads who've somehow conned most major businesses into putting their 401k business with them. In return they have to toe the line.





Anyways, there is no 10k limit for hardship withdrawal. As long as you are meeting the criteria for hardship distribution (and you are, i.e. purchase of primary residence) then there should be no problem. Normally a hardship distribution can only be for the dollar amount of the financial hardship. There is essentially no limit, except the funds that you have in your account that are available to you. With the home purchase your hardship amount is generally your down payment and/or closing costs. So, you should be able to request an amount that would cover these costs. Obviously you will have to show proof though, which would be a mortgage application or seller's agreement that shows the costs that you are having to pay out of pocket (i.e. can't be included in the mortgage note).





The only way there might be a 10k limit is if it is some sort of plan imposed limit. This means that your company might have drafted their plan to limit the hardship withdrawals. Get a copy of the Summary Plan Description and read what it says about hardship withdrawals.|||I've been told that; and, it can only be done once (even if escrow falls through). Also, proof needs to be provided, afterwards. Otherwise, normal penalty fees for early withdrawal would be taken. It helps to have more than one IRA to do this more than once from each institution.|||This depends on the exact wording of your plan, but generally you may borrow up to 50% of the amount for which you are vested. So if you have a ballance of $25,000 and are vested for only $22,000, you may borrow a total of $11,000.





The difference between borrowing for a home purchase and other reasons is the term of repayment. FOr a home purchase, generally a thirty year repayment is allowed.