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    dixiedee1835's Avatar
    dixiedee1835 Posts: 1, Reputation: 1
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    #1

    Oct 17, 2011, 04:47 PM
    Buying home using 401(k)
    I am 76 years of age and am planning to withdraw a large amount from my 401k to purchase a home to live in, not an investment. Are there any tax advanages with this move.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Oct 17, 2011, 05:19 PM
    Owning a home does have its tax advantages - such as deductions for mortgage interest and real estate taxes, and the possibility of avoiding capital gains taxes if it's your principal home. But they're really aren't any special tax advantaged beyond this for using your 401(k) account as the source of funds. Since your 401(k) represents deferred compensation, you must pay income tax on the amount you withdraw regardless what it's used for.
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