Hardship Withdrawal Merrill Lynch

[Tom Jacobs]

I have been planning to use my 401k to use as a down payment on a home. I have been checking up until this month to see what is available for withdrawal. each month I checked the full amount was available. I just put a offer in on a home an went to do the paperwork for the withdrawal and now my account only shows a small amount available for withdrawal?! Is it because it's a new month or because it's the weekend and the funds are reallocating?

[Frank S.]

Your post reads "hardship withdrawal", have you considered a 401(k)  loan at 5 years? The rate is  1% above prime,  paid to yourself. 

Unfortunately,  the loan limit is only $50,000. The origination costs are cheap, +- $200.  The limit is 50% of your available balance up to $50,000. 

Good luck, 

Frank

[Joseph Brotherton]

@Tom Jacobs I used my 401k to get a loan on purchasing my most recent house. You do not have to do a hardship loan if it’s verified to purchase your primary residents. This is an event it is allowed to be used for. As the other poster said prime plus one paid to yourself. If you actually call them and talk to someone about your situation they can help clear that up and give you a actual dollar amount avavilable.