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    betsykrawiec's Avatar
    betsykrawiec Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jun 28, 2007, 06:56 AM
    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?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jun 28, 2007, 06:59 AM
    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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