Mortgage LOX Maker: Retirement Withdrawal Letter
Make your own Letter of Explanation (LOX) for retirement account withdrawals. Confirm 401k or IRA withdrawal for mortgage down payment. Generate instant PDFs for your lender with digital signature capture.
Your Information
Letter Preview
I, {{borrowerName}}, confirm that I withdrew ${{withdrawalAmount}} from my {{retirementAccountType}} retirement account on {{withdrawalDate}}.
These funds were deposited into my checking account and will be used for the down payment on the subject property at {{propertyAddress}}.
The withdrawal was a distribution, not a loan, and no repayment is required. Supporting account statements and withdrawal confirmation are attached.
{{borrowerName}}
{{borrowerEmail}}
{{borrowerPhone}}
Borrower's Signature: {{signature:borrowerSignature}}
Date: {{signatureDate}}
Tips for Success
- Keep explanations brief and factual
- Attach supporting documentation when possible
- Review all information before signing
- Submit within 48 hours of your loan officer's request
Important Reminders
- All information must be truthful and accurate
- False statements may result in loan denial
- Keep copies for your records
- Contact your loan officer with questions
When To Use A Retirement Account Withdrawal Letter
401k Early Withdrawal
You withdrew money from your 401k before retirement age to fund your home purchase.
IRA Distribution
You took a distribution from your traditional or Roth IRA for your down payment.
First-Time Buyer Withdrawal
You used the first-time homebuyer exception to withdraw from retirement accounts penalty-free.
Hardship Withdrawal
You took a hardship withdrawal from your retirement account to purchase your home.
Rollover Funds
You rolled over retirement funds and used a portion for your home purchase.
Common Scenarios Requiring Multiple Letters
Retirement Withdrawal + Tax Implications:
- Use this retirement withdrawal letter to explain the withdrawal circumstances
- Use our source of funds letter to document retirement account withdrawals
- Use our large deposit letter to explain the deposit timing
Early Withdrawal + Penalty Explanation:
- Use this retirement withdrawal letter to explain early withdrawal penalties
- Use our source of funds letter to document the withdrawal amount
- Keep tax documentation for penalty calculations
How to Use This Retirement Account Withdrawal Letter Generator
Gather Your Information
Collect all necessary details and supporting documentation before starting the generator.
Complete the Form
Fill out all required fields in the generator. The preview will update in real-time as you type.
Review and Sign
Review your letter for accuracy, add your digital signature, and download the PDF.
Submit to Your Lender
Send the completed letter to your loan officer along with any supporting documentation.
Supporting Documents Your Lender May Need
| Document | What It Tells Your Lender |
|---|---|
| Retirement account statements | Provides additional verification and context for your situation |
| Withdrawal confirmation documents | Provides additional verification and context for your situation |
| 1099-R tax form | Provides additional verification and context for your situation |
| Bank statements showing deposit | Provides additional verification and context for your situation |
| Plan administrator letters | Provides additional verification and context for your situation |
Frequently Asked Questions
When will I need a retirement withdrawal letter?
Your loan officer will request a retirement withdrawal letter if you used retirement funds for your down payment.
What's the difference between a withdrawal and a loan?
A withdrawal is money you take out permanently, while a 401k loan must be repaid and counts as monthly debt.
Are there penalties for early retirement withdrawals?
Yes, early withdrawals typically incur a 10% penalty plus income taxes, though first-time homebuyer exceptions may apply.
More Home Buying Tools
Mortgage Calculator
Calculate your monthly mortgage payment including taxes, insurance, and PMI.
Calculate payment →Home Affordability Calculator
Determine how much house you can afford based on your income and debt.
Calculate affordability →Gift Letter Generator
Create professional gift letters for down payment assistance from family.
Create gift letter →