Congress is currently considering a bill that would permit 401(k) investors in danger of losing their primary home to foreclosure to use up to $50,000 or 50% of the balance, whichever is less, to prevent that from happening.
Investors would still owe taxes, but unlike hardship withdrawals, they would be excused from the IRS 10% penalty, under the proposed bill, called the HOME Act, or Hardship Outlays to protect Mortgage Equity Act. The investors would need to spend the money within 120 days.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access