Can I use 401k Hardship Withdrawal if I have money in the bank?

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The 10% is a penalty that is from the IRS if you are under 59 陆 years old. This is true for all qualified plans (meaning tax differed). The only way around the 10% would be 鈥淚F鈥?the money was in a traditional IRA (Individual Retirement Account) and this would be your first home that you are buying. The IRS will allow the 10% to be waved for the fist 10,000 that is taken out for first time home buyers. If JP Morgan will allow you to roll the moneys into a traditional IRA while in-service, you might be able to get around the 10%, but most, if not all, 401K plans will not allow you to just rollover funds until you leave the company, or 59 陆 (or) 691/2 years if age while in-service. (depending on the plan rules)

You might have just talked to someone in the call center that is either not licensed, or doesn鈥檛 know what they are doing. When it comes to the IRS, you should always listen to a tax advisor and not someone at the company where the funds are held. I hope that cleared it up a little for you. Best of luck with the new house.

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Can I use 401k Hardship Withdrawal if I have money in the bank?

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