My wife and I are expecting to buy a home either this year or next, will start looking in the next month. It will a first home for the both of us.
I currently have both 401(k) and 401(a) from a previous employer (have not yet rolled over). 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
- Is the $10,000 after taxes? Meaning, should I withdraw $13,500 with anticipation of having $10,000 un-penalized after taxes, or should I withdraw $10,000 and expect to have $6,500 after taxes?
- Is there any difference in withdrawing from a 401(k) vs 401(a)?
- Is it necessary for me to first transfer the money to an IRA, so it is readily available when I actually go to get a mortgage?
- I anticipate my new employer to offer a 401(k) beginning in 2018 and will be considering rolling over my old 401(k)/(a) to theirs. Does that have any impact on how I should manage the withdraw for a house down payment now?