First Time Home Buyer 401k Withdrawal 2025. 401 (k) loan and 401 (k) “hardship” withdrawal. Generally, the amounts an individual withdraws from an ira or retirement plan before reaching age 59½ are called early or premature distributions.

There are two ways to buy a house using money from a 401 (k):. I am aware first time home buyers can withdraw $10,000 without penalty from a 401 (k)/ira for a down payment, but i have a few questions regarding specifics.