I know that when you buy your first home you can you use 401 ira towards the down payment of your first home.With my existing home can i use 401k money towards paying an existing home loan without being penalized or the whats the lowest penalty??
401 k home loan
- Thread starter Alexg
- Start date
Darryl
Full time employment: Posting here.
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- Mar 29, 2007
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You should call your plan administrator. I think many plans would allow a loan for financial hardship reasons etc...
Taking a loan like this is really a bad idea and if you separate from your employer for any reasons you have to repay the full amount outstanding on the loan.
Taking a loan like this is really a bad idea and if you separate from your employer for any reasons you have to repay the full amount outstanding on the loan.
Achiever51
Thinks s/he gets paid by the post
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RED ALERT! Taking a loan from your 401(k) is generally not a good idea. Besides the fact that you have to repay the loan in full usually within 60 days if you leave the job, you may be seriously limiting your retirement finances.
Suggest you visit the 401khelpcenter for more information. Here's a link:
401khelpcenter.com - 401k Plan Loans and Withdrawals
Suggest you visit the 401khelpcenter for more information. Here's a link:
401khelpcenter.com - 401k Plan Loans and Withdrawals
If you want to cash in your 401k you will pay income tax on the money and pay a 10% penalty (unless you are over 59.5, yada yada)
If you take out a loan you can avoid the penalty but you have to pay the loan back.
It is hard to conceive of a reason good enough to cash in your 401k.
If you take out a loan you can avoid the penalty but you have to pay the loan back.
It is hard to conceive of a reason good enough to cash in your 401k.
