401(k) withdrawals and loans should be used as a last resort due to the penalties and fees that can be associated with them. Roth IRA: A Conditional Backup OptionUnlike a traditional IRA, which is funded with pre-tax contributions, a Roth IRA is funded with after‑tax dollars. So if you, say, withdraw $30,000 from your Roth IRA for home repairs in 2026, the most you can deposit in your Roth IRA account is $7,500 or $8,600, depending on your age. If you don't qualify for a hardship withdrawal, a 401(k) loan is typically a better option than a 401(k) withdrawal. Finally, avoid viewing Roth IRA withdrawals as free.