60 day rollover/401k withdrawal for home purchase
Do the 60 day rollover rules apply to a withdrawal from 401k? After the withdrawal for home purchase is made, can the client do a 60 day rollover of that money?
Do the 60 day rollover rules apply to a withdrawal from 401k? After the withdrawal for home purchase is made, can the client do a 60 day rollover of that money?
Permalink Submitted by Alan - IRA critic on Sun, 2017-11-12 17:06
If he has the funds to complete the rollover, this can be done unless the 401k distribution was a hardship withdrawal.If the distribution is not rolled over, it will be subject to tax and any applicable early withdrawal penalty, but if the distribution came from an IRA instead and was for a qualified first home purchase there would be no penalty on up to 10,000 of the distribution (lifetime limit).