David
Returning Member

I took early 401K distribution to avoid foreclosure on my home. Do I need to pay the 10% penalty?

The bank holding a HELOC on my primary residence was closed by the FDIC.  The new bank that assumed the debt called in the loan.  Only way for me to avoid foreclosure was to take an early distribution from my 401K.  Is this a legitimate reason to not have to pay the 10% penalty?