Yes — 401(k), IRA, and Roth balances often count toward Non-QM asset depletion income at a reduced percentage. Here is how Indiana investors typically treat retirement liquidity.
Asset depletion underwriting does not ignore your largest nest egg. Most Non-QM investors include employer plans and IRAs in the eligible asset pool — then apply a haircut so only a portion of the balance becomes “usable” for the income calc.
A common pattern is 60–70% of the vested balance after confirming ownership and access. That usable amount is then divided by the loan term in months to create monthly qualifying income for DTI — without requiring you to cash out the account at closing.
Ryan & Steve map each account type to the right investor: some programs are more flexible on age 59½ rules; others weight brokerage higher and retirement lower.
Guidelines vary by investor, credit, and loan amount. This overview is educational — your file is reviewed against current product rules.
Beyond the balance, underwriters confirm you can access the funds and that the account is not already pledged elsewhere.
Statements must show the borrower or co-borrower as the account holder. Unvested employer contributions usually do not count.
Some investors require you to be eligible for penalty-free withdrawals; others accept a larger haircut instead.
Expect two to three months of statements showing institution, balance, and your name — not a single screenshot.
Funds earmarked for down payment or reserves cannot also create depletion income. We separate those pools before underwriting.
If most of your net worth sits in retirement accounts, a larger haircut means you need a bigger balance to hit the same monthly income figure. Pairing retirement with cash and brokerage often strengthens the file.
We also check whether Social Security, pension, or other retirement cash flow can be stacked with depletion income — which may reduce how much of the IRA or 401(k) you need to count.
Quick planning tips
Related asset depletion guides and Non-QM resources from Ryan & Steve.
How brokerage and marketable securities count toward depletion income.
Cash, brokerage, retirement, and common exclusions in one guide.
Why retirees are a primary fit for asset-based Non-QM.
Full program hub, eligibility snapshot, and application steps.
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Yes — most Non-QM asset depletion programs count 401(k), traditional IRA, Roth IRA, and similar retirement accounts at a reduced percentage, commonly 60–70%, to reflect market risk and withdrawal rules.
Not always. Some investors require age eligibility for penalty-free access; others allow retirement balances with a larger haircut. Ryan and Steve confirm the exact rule for your investor before you apply.
Usually they count similarly at the same haircut percentage. The bigger distinction is liquidity and age-based access — documentation must show you own the account and can access the funds if needed.
Only if that spouse is on the loan (or the program allows co-borrower assets). Assets must be owned by the borrower or co-borrower named on the note — not a non-borrowing family member.
Ryan & Steve will apply current haircuts to your 401(k) and IRA balances before you make an offer.