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

    Jan 28, 2007, 08:47 PM
    401K early withdrawal
    My ex husbands company doesn't allow me to keep my portion of the 401K in the company. I was told to invest in an IRA. I am 47yr of age and living on a very little income. Can I use part or any of the money to purchase a home. My husband and I did own a home together. But I have never purchased one on my own. I have been renting with roommates since the divorce.
    PSUMAN99's Avatar
    PSUMAN99 Posts: 8, Reputation: 1
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    #2

    Feb 17, 2007, 06:41 PM
    Quote Originally Posted by DWfemale
    My ex husbands company doesn't allow me to keep my portion of the 401K in the company. I was told to invest in an IRA. I am 47yr of age and living on a very little income. Can I use part or any of the money to purchase a home. My husband and I did own a home together. But I have never purchased one on my own. I have been renting with roommates since the divorce.
    If you use money from a 401(k) or traditional IRA to purchase a home, you will be hit with an early withdrawal penalty PLUS have to pay taxes on it immediately. This usually isn't a smart choice. You are much better off borrowing more money. If you have a Roth IRA, you can use that money to purchase a home without receiving penalties or paying taxes.
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