Homebuying > retiring? Currently, 401(k) participants must pay an additional 10% tax on funds withdrawn from their account before the age of 59-and-a-half-also known as an early distribution-for any number of reasons, including buying a home. Rules are different under Individual Retirement Accounts (IRAs), which allow qualified first-time homebuyers to withdraw up to $10,000 without incurring the 10% penalty.
The proposed 'asset test' would require Medi-Cal and In-Home Supportive Services applicants to prove their assets do not exceed $2,000, potentially leaving many without health coverage.