401(k) to purchase new home

Question

Jun 28, 2007, 05:56 AM

betsykrawiec

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Join Date: Jun 2007

Posts: 1

401(k) to purchase new home

I am considering using a small amount of my retirement account toward the purchase of our new home - what are the penalties/ramifications of doing this?

Answers

Jun 28, 2007, 05:59 AM	#2

ScottGem Computer Expert Join Date: Jan 2003 Location: LI, NY - USA Posts: 23,862 Pay to call ScottGem for advice ($.75/min)	Don't do it! First you will pay a 10% penalty. In addition, what you withdraw will be added to your taxable income for the year. Check to see if your 401K has a loan provision. If so take out a loan for the amount you need. A 401K loan is paid back top yourself including the interest.

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