NASE Blogs

Buying A Home

Wednesday, December 30, 2009
Q: Can I withdraw money from my retirement plan without penalty if I use the money to buy my first home?

A: Generally, any withdrawals that you make from a qualified retirement plan before you reach age 59 ½ are subject to a 10-percent penalty.

There are exceptions to the rule, but not for buying a first-time home.

However, depending on the type of retirement plan you have, you may be able to borrow money from your plan to purchase your first home. Your plan administrator should have written information that explains when you can borrow funds.

If your retirement plan allows borrowing for a home purchase, be sure to talk to your tax or financial advisor before you make a final decision.

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