401(k) Home Purchase Calculator

401(k) Loan: No taxes or penalties, must repay within 5 years (15 for home)
Hardship Withdrawal: Taxes + 10% penalty, no repayment required
First-time buyer: IRA has $10,000 penalty-free exception, 401(k) does not

Compare 401(k) loan vs withdrawal for a home down payment

Using your 401(k) for a home purchase involves either a loan (up to $50,000, repaid with interest to yourself) or a withdrawal (subject to income tax + 10% penalty if under 59 1/2). A 401(k) loan is usually less costly, but carries job-change risk.