Originally Posted by
grandville
When i retire at 62 1/2 should i take a large amount out of my 401k money and pay off the mortgage on my house. Are there any tax penalties by doing it. Should i just reinvest
the 401k dollars.:confused:
Each person's situation is different. You may need the retirement income the 401(k) produces ? You may or may not be earning more interest on your 401(k) than you mortgae loan is charging you ? Your 401(k) contributions probably resulted in lower Fed and State taxes on your income and might or might not be completely or partially free of income tax when, if you do withdraw it ? You might or might not be considering refinancing your mortgage or you might be considering moving to another home ? If you have other debts than the mortgage interest that might be tax deductible, you may be better off paying those debs off with the 401(k) money. It might be a good idea to get the opinion of a trained perhaps "certified" financial planner and pay him a fee to analyze your specific situation.
