There are two paths, with different paperwork: a hardship withdrawal, or the 401(k) loan we usually prefer. A hardship withdrawal is a true distribution. Under IRS rules it generally triggers ordinary income tax on the amount plus an early-withdrawal penalty if you're under 59.5, which is why we rarely recommend it. If you do go that route for a home purchase, the plan will usually want documentation showing the funds are going toward the home, such as your purchase contract and the estimated closing statement. The 401(k) loan is the alternative we prefer: borrow (commonly up to $50,000, depending on your balance and plan rules) and repay yourself rather than handing money to taxes and penalties. When your plan allows it, that's almost always the better source of down-payment funds. Plan rules and tax treatment vary, so confirm the paperwork with your plan administrator and the tax impact with a CPA before you count on the money.