If I want to put a down payment on a home and want to use some of the money from my retirement plan, will I still be penalized?
2007-03-26 10:06:47 · 5 answers · asked by peace_love_granola 3 in Business & Finance ➔ Personal Finance
yeah unfortunately an early withdrawal is an early withdrawal no matter what the reason
2007-03-26 10:09:36 · answer #1 · answered by Atheism itself is your best shot at heaven !! 7 · 0⤊ 0⤋
There are only a few reasons you can take out your retirement money without being penalized. The standard is 20%. I would check with an HR to see what these are.
2007-03-30 08:35:07 · answer #2 · answered by kmf77 3 · 0⤊ 0⤋
Owning a home is a wonderful goal--and so is retiring with enough money in the bank that you don't have to rely on family or the government to take care of you.
Don't rob yourself of one goal in order to fund another.
(Especially right now--stocks are down and real estate values are way up. It's not the best time to sell stock OR buy real estate, much less do both together!)
2007-03-26 10:38:38 · answer #3 · answered by lizzgeorge 4 · 0⤊ 0⤋
Yes, you will be taxed and penalized.
The exception to the rule is only for IRAs, not 401(k)s.
However, you may be able to borrow from your 401k. This money has to be paid back though.
2007-03-26 10:10:46 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
Your best bet is to borrow from your 401k and pay yourself back with interest. Cashing in is just bad news.
2007-03-26 10:15:45 · answer #5 · answered by Anonymous · 0⤊ 0⤋