mtukhi123
Confused about dryer sheets
Hello All,
I graduated from college about 4 years ago. I changed my first job after two years and now I am on my second. When I left my first job, I took out all my 401K funds, paid the penalty for withdrawing and paid taxes. I realized I got more compare to If I simply did not contribute and took the fund from my pay check and paid the taxes right away.
Now, my question is, is it better for me to contribute more (like 20%) to my 401K and later withdraw it after two years or just keep saving in the bank for two years. I will need cash in about two years because I am planning to buy(finance) my first home with FHA loan and will need down payment.
In first case, I will be paying taxes right away and saving it in my bank account. In second, I will be contributing that amount to 401K and withdrawing it after 2 years with penalty and tax. FYI, 88% of my 401K is in stocks. Also, can you tell me if we get dividends from stocks in 401K?
I graduated from college about 4 years ago. I changed my first job after two years and now I am on my second. When I left my first job, I took out all my 401K funds, paid the penalty for withdrawing and paid taxes. I realized I got more compare to If I simply did not contribute and took the fund from my pay check and paid the taxes right away.
Now, my question is, is it better for me to contribute more (like 20%) to my 401K and later withdraw it after two years or just keep saving in the bank for two years. I will need cash in about two years because I am planning to buy(finance) my first home with FHA loan and will need down payment.
In first case, I will be paying taxes right away and saving it in my bank account. In second, I will be contributing that amount to 401K and withdrawing it after 2 years with penalty and tax. FYI, 88% of my 401K is in stocks. Also, can you tell me if we get dividends from stocks in 401K?