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

    Nov 13, 2011, 02:31 PM
    Cashing in 401k to buy a house?
    We are 52 years old. We own a home in town but want to buy a hobby farm. We are afraid this wonderful deal is going to get bought before we can sell our home. Can we take out all our money in 401K and just pay the penalties?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Nov 13, 2011, 02:33 PM
    You can if your plan permits, but I would look into a bridge loan. It will probably be cheaper in the long run.
    Dr1757's Avatar
    Dr1757 Posts: 186, Reputation: 25
    Junior Member
    		  
    #3

    Nov 13, 2011, 03:02 PM
    In addition to the penalty, you will have to pay federal taxes on any money withdrawn unless it is after tax money you added to your 401k.
    I agree with ScottGem on taking out a bridge loan.
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