+12 First Time Home Buyer 401K Withdrawal 2020 Ideas. Typically, this limit is 50% of your 401 (k)’s vested. 401 (k) allows the account owner to withdraw the money, but it may have an early withdrawal penalty of 10% if withdrawn prematurely.

However, that $10,000 is still subject to state and. For that withdrawal you will receive a 1099. See general information for details.