Yes—401(k), IRA, and Roth accounts often count at a reduced % for Indiana asset depletion Non-QM. See haircuts and docs.
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Asset Depletion Loans
Can Retirement Accounts Be Used for Asset Depletion?
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.
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
— List every retirement plan early — including old employer 401(k)s
— Keep statements current; stale PDFs slow underwriting
— Do not liquidate solely to “prove” income unless we advise it
— Ask about stacking SS or pension with depletion income
Related asset depletion guides and Non-QM resources from Ryan & Steve.
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Ryan & Steve will apply current haircuts to your 401(k) and IRA balances before you make an offer.