I need some good advise. I work for a hospital and have been there for almost 5 years. We become eligible for retirement after 3 years so I have like $4400 in there right now which is a 457b plan. I am in the process of trying to buy a house. We are approved but need a downpayment of $3800. I have about 1/2 of my own money for that and was wondering if I could borrow the rest out of my 457b plan or either pull some out for the down payment. My loan officer told me that you can pull retirement money out of a 401k for a house down payment but she wasnt sure on the 457b!! Any one know??
2007-09-29 02:59:19 · 3 answers · asked by reni768 1 in Business & Finance ➔ Renting & Real Estate
Ask your plan administrator. If this is doable, he or she will know. However, generally the funds in a non-governmental 457(b) plan remain the property of the employer and are held in trust for the employee. This would bar any loan against the account. However it may be possible to withdraw the funds, depending upon the rules of your plan. You'd pay income tax at your ordinary rate however 457(b) plans do not attract the 10% penalty tax for early withdrawal if you're under age 59 1/2 as a 401(k) or traditional IRA would.
2007-09-29 03:51:02 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Ask your plan administrator, but be aware that if you withdraw before the age of 59 1/2 you do so with great penalty, usually 10%
2007-09-29 19:55:10 · answer #2 · answered by Classy Granny 7 · 0⤊ 1⤋
You're never going to get the right answer here on yahoo. You have to call the person who is in control of your account. Ask your employer if you don't know the number, only they can answer this since it is specific to that account.
2007-09-29 15:52:21 · answer #3 · answered by Shawna Marie 3 · 0⤊ 1⤋