Ask Experts Questions for FREE Help !
Ask
    Holleyberry74's Avatar
    Holleyberry74 Posts: 1, Reputation: 2
    New Member
    		  
    #1

    Dec 28, 2007, 09:17 PM
    How do I go about cashing in my 401k to purchase my first home.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #2

    Dec 28, 2007, 10:44 PM
    You really need to talk to a tax advisor, cashing in or taking money out to buy a home, with all the lost interest, with all of the penalty and with the taxes to pay, this is a really poor idea.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Dec 29, 2007, 07:06 AM
    If you withdraw (up to a certain limit) for purchase of your first home from Traditional IRA, then you don't pay early withdrawal, but withdrawal from 401K even for first home is subject to Early Withdrawal penalty. You may be able to borrow from 401K.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #4

    Dec 29, 2007, 08:28 AM
    First its not a good idea to piggyback your question on someone else's. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Dec 29, 2007, 11:56 PM
    Four Words: DO NOT DO IT!
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401k early withdraw penalties [ 16 Answers ]

I am considering quiting my present job and using my 401k money to open a business and was wondering what percentage of the balance that I would be subject to loose?

Withdraw 401K [ 2 Answers ]

If I quit my job, can I close my 401k and take the money and invest it myself? I have 71000 in the account and I want to start my own business, but I would like to use the 401k to pay off my house and other debts.

Withdraw 401k [ 1 Answers ]

I am getting ready to leave my employment with UPS and would like to withdraw all of my 401k to get all current bills paid off and start over. I am moving to another state

401k Early withdraw hardship [ 1 Answers ]

I had to take 17k for a hardship withdraw on my 401k. Will I have to pay federal taxes on this?

Procedure to withdraw 401k money [ 3 Answers ]

Hi, I was employed with an american firm till the end of September 2006. I am no longer living in the US. I want to withdraw my entire 401 K amount early next year. What is the procedure to withdraw the money ? There is a tax penalty of 10%... when I receive the amount, will it be the...

View more questions Search