2006-06-07 05:10:28 · 4 answers · asked by patricia k 1 in Business & Finance ➔ Renting & Real Estate
You can borrow against 401k funds, and it is not considered early withdrawal. You'd be using your retirement funds, but a) you will need to pay them back, and b) you won't get any of the tax deferred benefits that a retirement account is designed to provide. I wouldn't touch the 401k for any reason other than a dire emergency.
A more sophisticated option would be to open a self-directed IRA. This lets you invest in less conventional investments (properties, mortgages, etc) while keeping the investment tax-deferred. You may even be able to roll your 401K into one of these IRAs.
Not many financial institutions offer self-directed IRAs. One that does is:
http://www.trustetc.com/
(I have no affiliation with this company, and have never used their services, so try them at your own risk).
2006-06-07 08:04:47 · answer #1 · answered by SndChaser 5 · 0⤊ 0⤋
My parents were able to borrow against their 401(k) to purchase a house. This might be a better option (tax purposes and such) than taking money out of a 401(k) or an IRA.
2006-06-07 05:12:32 · answer #2 · answered by irishharpist 4 · 0⤊ 0⤋
so a lot greater now as an older guy than while i became a lot youthful. I take a itemizing of places i could desire to end for the errands and a itemizing of the flaws that i could desire to purchase. wallet & funds. keys. sunlight colours. cap or hat. cellular telephone. handle or mapquest guidelines if taking the canines then puppy bags puppy treats the folding puppy water bowl Oh, I forgot the spouse.... lol
2016-12-08 07:26:19 · answer #3 · answered by leja 3 · 0⤊ 0⤋
irish is correct --because if you take it out early then you will have a 50% tax bill on the $ withdrawn!
2006-06-07 05:14:13 · answer #4 · answered by golferwhoworks 7 · 0⤊ 0⤋