Liquidating 401k for home purchase

If you switch from one employer to another, a 401K account can usually be rolled over into a new account at the new employer, or into an IRA, without triggering tax payments or penalties.

However, loans against a 401K cannot be rolled over.

Alternative approaches include a second mortgage, which is another source of needed funds, and mortgage insurance, which reduces the down payment required.

As an illustration, you want to buy a house for 0,000 and have only ,000 in cash to put down.

Pretax funds are subject to income tax (only the amount you withdraw) but no penalties at age 65.April 19, 2004, November 28, 2006, October 2, 2007, April 10, 2011, May 4, 2017 The down payment required for a home purchase is the most important barrier to home ownership.Tapping a 401K account is a tempting method of meeting the requirement.Pre-tax contributions are most common, and you most likely made this type of contribution.I hesitate to mention this because there are many moving parts and may not be appropriate for y... There are actually a few things that can be done, but none is without consequences.[it is not clear what you want to use your money for...

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Liquidating 401k for home purchase introduction

Liquidating 401k for home purchase