401k loan for my down payment?

[Juan Pablo Ceballos]

Hi everyone, 

I am going to use my 401k to pay for my down payment, I would like to know if this method is fine? Thanks.

[Dmitriy Fomichenko]

Rob, perhaps you misunderstood your plan's loan policy. Assuming that your plan allows participant loan (not all plans do) "Repayment of the loan must occur within 5 years, and payments must be made in substantially equal payments that include principal and interest and that are paid at least quarterly."

You are probably confusing the loan from a 401k to a 60-days indirect rollover from one IRA to another IRA.

See the following IRS link for reference about the loan from a 401k:

https://www.irs.gov/retirement-plans/retirement-pl...

Here is a reference for a 60-day rollover:

https://www.irs.gov/retirement-plans/plan-particip...

Hope this is helpful to you and other readers.