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.

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