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Guest tradjd56
Posted

Is an in-service withdrawal for 1st time homebuyer allowed- I know its allowed up to 10,000 for an IRA - is this true with an esop?

Posted

What does the plan document say? The document is going to control if this can be done or not.

It would be rare to see a document that allows in-service distributions in an ESOP except for disversifications and maybe at some age like 65.

Just out of curiosity are you a participant in an ESOP? If so, start by reading the Summary Plan Description you got from your employer? If you don't have one ask for a new one. It will most likely answer your question.

edit: minor typo

Posted
Is an in-service withdrawal for 1st time homebuyer allowed- I know its allowed up to 10,000 for an IRA - is this true with an esop?

You may be crisscrossing two separate things.... 1) qualifying reasons to take an in-service withdrawal and 2) exceptions to paying the 10% early withdrawal penalty. First time homebuyer w/drwl from an IRA is a 10% penalty exception.

Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra

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