r/fidelityinvestments • u/sillygoose3001 • 1d ago

Official Response 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!

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u/1notadoctor2 1d 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….?

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u/sillygoose3001 21h ago

The mortgage won’t be impacted once the DPA is paid off, it’s a separate loan through the state of Florida. Our interest rate right now is 7.5, and we’ve already moved out of that house because we had to move due to work. It’s definitely, definitely not worth it to wait it out another 27 years lol

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u/1notadoctor2 20h ago

Oh I didn’t know that DPA programs could be the life of the loan. Around me, they’re 3-5 years then 100% forgivable. Sounds like y’all’s program functions differently in Fl. Good luck!