HOME Act would let workers use 401(k) funds to pay mortgage
If this bill passes, it may be very hard to convince certain workers not to dip into their retirement savings when things get tough.
The HOME Act was recently introduced in the House and the Senate. If passed, the bill would allow individuals to make withdrawals from their 401(k) accounts to pay their mortgage – without being hit with a penalty on those withdrawals.
The withdrawal amounts would be capped at $50,000 or one-half of the retirement account’s value, depending on which amount is smaller.
The bill would also require individuals to use retirement funds to make mortgage payments within 120 days of the withdrawal. Deferred income tax on those withdrawals would still need to be paid to the IRS.
We’ll keep you posted.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
White Papers
Provided by Anaplan
Further Reading
Reassessing HSA employer contributions can increase participation while capturing meaningful payroll tax savings. Employer contributions to...
Heads up, Finance pros: HR might be coming to you soon for input and approval on new OBBBA benefits changes. Much of the media coverage...
As employers finalize their 2026 budgets, rising healthcare costs are forcing tougher decisions in financial planning and employee benefits...
The IRS has explained how to handle taxes if a retirement plan participant doesn’t cash a distribution check and another check is issued....
Environmental, social and governance (ESG) ratings of companies was never as popular as many in the media made it out to be. And the more t...
Layoffs, inflation, AI … these are just some of the factors making employees feel more stressed about their jobs and career future. S...
