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
White Papers
Provided by Personify Health
Further Reading
What should you do if you mistakenly pay out too much for one of your employer-provided benefits, such as your retirement plan? Plan spo...
Some of your year-end health plan responsibilities have lifted, thanks to eleventh-hour legislation from Congress. Plan sponsors that me...
The Department of Labor (DOL) is once again taking a neutral stance on offering a certain investment option to retirement plan participants...
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...
While the IRS can assess penalties under the Affordable Care Act (ACA), it can’t issue the certifications required beforehand, a court ha...
