However you’ve got to remember that because your 401k was intended to be used for retirement, it won’t be as easy as withdrawing the funds you need.  You’ll need to know a few of the rules and how to avoid paying unnecessary taxes and penalties.
If you’re really considering using your 401k to buy a house, one of the best ways to do this will be to borrow from your own retirement savings.  This is called a 401k loan. It might be helpful to know that if you have an IRA you are allowed to take as much as $10,000 for a home purchase or renovation.  This is because the IRS has different rules for how you can use the funds in your 401k and IRA.
Per FTC guidelines, IRA vs 401k Central would like to disclose that we may be compensated for our personal opinions, views, and affiliate relationships with some of the featured products and services. However, your 403(b) plan might not offer hardship withdrawals because they're not required of all 403(b) plans.

If you've left the job but still have the money in the 403(b) plan, you can take it out at any time without showing a financial hardship.
In addition, each 403(b) plan is allowed to set specific criteria as to which hardships it will allow withdrawals for. As soon as you've left your job, the account balance is yours to transfer to another account or withdraw as you wish. Please fill in the following information so we can alert the Home Guides editorial team about a factual or typographical error in this story. If you've been saving money in a 403(b), you might be able to get at the money before you retire to buy a house, but it will cost you extra in tax penalties.

For example, just because your 403(b) allows for a hardship withdrawal for medical expenses doesn't mean it will allow a hardship withdrawal for buying a house. Unfortunately, just because you're taking a hardship withdrawal doesn't mean you get out of the penalty. And, since there's no specific exception for buying a home, that means you're stuck paying it.

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