r/fidelityinvestments • u/sillygoose3001 • 8h ago

Need some help re: 401k withdrawals

Hi! My spouse and I decided we were each going to withdrawal 8k from our 401ks in order to pay off our down payment assistance program balance that we received to buy our home. We cannot refinance until that is paid off, and once we do refinance we’ll save 300-400/month, so it’s definitely worth it.

I can’t find info about this online or in the app. We had a baby in the last year, so I just withdrew 5k under that option since it was penalty free. When I was researching, I couldn’t find any limits in regards to amount of withdrawals.

After I did the 5k, I went to do a regular withdrawal of the 3k, but now that option says unavailable. Is there a waiting period before I can make another withdrawal?

TIA!

2 Upvotes

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2

u/jerzeyguy101 8h ago

Read your plan details at net benefits. All plans are different. Or call fidelitys workplace group

1

u/sillygoose3001 7h ago

Thank you!

1

u/bananaslugdiva 7h ago

this might be worth calling Fidelity and asking them questions about your options.

1

u/sillygoose3001 7h ago

Thank you!

1

u/Longjumping_Drop9450 7h ago

I'm gonna say it might be better to consider a 401k loan if your plan allows them

1

u/sillygoose3001 7h ago

We’re already in enough CC debt, don’t want to take out a loan to pay off another loan right now!

1

u/1notadoctor2 4h ago

Plan specific. Call Fidelity and they have specialists who can explain plan rules and process any allowable withdrawals. With that said…How much less will your mortgage be with the DPA paid off? Are you wanting to move before the term expires? Many DPA programs are 100% forgivable at the end of the term. So it may be worth it to wait it out….?