401k as cash reserve (loan, loan, closing, need)

[nitsuj11]

I'm saving for home and should have 10% and the closing costs by the time I close. However, I will not have much for reserves. I've read that you can use your 401k toward reserves, and 60-70% of it will count. Do I have to withdraw it or take a loan against it before it counts, or can I just keep it in my 401k account for it to be considered part of my cash reserve.

[starwind]

You dont need to touch it, it just needs to be in the account

[gabrielh]

And they want to make sure it's a type of 401k where you can withdraw money at anytime in case of hardship. If won't fly if it's one that you cant cash in before retirement or termination.

[SmartMoney]

Yes, you have to print out the instructions for loans and hardship withdrawals.

[TimtheGuy]

I have never had to do anything other than provide a copy of the most recent statement. Never had to provide any terms for loans or hardships. I think the concept is based on job loss. I beleive you can withdraw from all 401k's after job loss.