Complex 401k question

[Mike Hay]

I’m still learning the layout here so my apologies if this is in the wrong forum. 

My question pertains to a 401k hardship withdrawal. I’m aware of the 10% penalty and income tax ramifications and that it is generally a bad idea to withdraw under most circumstances. 

But....If my 401k plan allows me to take a hardship withdrawal to use as a down payment on an owner occupied residence, is it then possible to do a cash out refinance on the property 1-2 years down the road? Effectively recovering the 401k withdrawal as cash (minus penalties, taxes, closing costs of course). Assuming all LTV requirements are met and I still occupy the home.

The question popped into my head and I can’t find an answer anywhere. 

Thanks in advance to anyone who may have answers. 

[Dmitriy Fomichenko]

Mike, if your plan allows you to take a distribution to buy residence and you do that - you would meet the requirements. The plan may have a restriction for you to stay in the residence for a certain period of time, you may want to check with your plan administrator if there are any restrictions on refinancing after the fact.