cathyan Posted March 9, 2009 Report Share Posted March 9, 2009 I thought I read somewhere that there is an exception to the penalty on early IRA distributions if if a homeowner was facing foreclosure. I can't find anything on it, so did I really read that? Or was it only proposed? Or was I dreaming? Any help appreciated! Quote Link to comment Share on other sites More sharing options...
Cathy Posted March 9, 2009 Report Share Posted March 9, 2009 I thought I read somewhere that there is an exception to the penalty on early IRA distributions if if a homeowner was facing foreclosure. I can't find anything on it, so did I really read that? Or was it only proposed? Or was I dreaming? Any help appreciated! Possibly you read that a withdrawal can be made from a 401(k) if a homeowner was facing foreclosure? That's one of the few technical reasons an active employee can make a withdrawal. Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 9, 2009 Report Share Posted March 9, 2009 Wow, for a minute there I thought cathyan was talking to herself, and answering back. Quote Link to comment Share on other sites More sharing options...
cathyan Posted March 9, 2009 Author Report Share Posted March 9, 2009 Hey, I do that and sometimes get some very good answers! "Course, sometimes they're just nonsense. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 9, 2009 Report Share Posted March 9, 2009 Possibly you read that a withdrawal can be made from a 401(k) if a homeowner was facing foreclosure? That's one of the few technical reasons an active employee can make a withdrawal. How would I account for that, I have client that took out 25K to avoid foreclosure "dire situation" on his home? Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 11, 2009 Report Share Posted March 11, 2009 You don't account for it. Its an early withdrawal. Period. He just gets the cash, doesn't get out of tax and penalty. Quote Link to comment Share on other sites More sharing options...
Cathy Posted March 11, 2009 Report Share Posted March 11, 2009 joanmcq is correct. Taxable with penalty if no other exception applies. What I stated was merely an example of a reason a company can use to let an employee make an early withdrawal from a 401k. RC....I have been known to answer myself a time or two...but normally not until April. :spaz: Quote Link to comment Share on other sites More sharing options...
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