In order to avoid losing my house, can they make an exception and let me have early withdrawal on my 401k?

Answer by  happytimes63 (865)

You can usually cash your 401k early. The fees and the heavy tax rate you will pay to get the money may not be worth it. You can sometimes borrow against the 401k to get funds in an emergency.

Answer by  tamarawilhite (17883)

You must pay the income taxes and 10% penalty on your 401K no matter the hardship unless you are disabled or have reached retirement age. You can, however, pull the principal out of the Roth IRA without penalty. This would be the amount of money you put in, not the interest or account growth.

Answer by  Roland27 (16334)

Most 401k's can be withdrawn from but there is a penalty involved. Most of the time penalty and the taxes you have to pay in order to obtain this money is so high that you often pay more than you get out of it in the first place. Talk to an accountant to weigh your options.

Answer by  misterhrcpins (455)

Yes, once you have fallen behind on your payments, it is possible to tap retirement funds to get you back on your feet. You would need to consult your account to gain more specific information for your situation.