Liquidating 401k to buy home

04-Jul-2020 20:30

(Financially, it can be a tossup, depending on how long you intend to stay put; check out Trulia's rent vs.

buy calculator to get a recommendation for your situation.)Read Next: The Right Way to Take Your IRA Withdrawals But the experts warn against tapping IRA funds -- even more so if they offer your only avenue toward home ownership.

Normally we couldn't withdraw that cash without incurring a 10% penalty, but the IRS makes an exception for withdrawals of up to ,000 for first-time home purchases.

One possible source of the needed ,000 is your 401K account.

I saw the house and put a verbal offer in on Saturday, May 5.

All of the papers were signed and the deed exchanged on the 21st, only because I delayed the closing by 4 days.

And yet, while my wife and I are adding deck chairs and hanging bookshelves, we're not exactly planting roots.

This house is just a rental, not a property we own.

One possible source of the needed ,000 is your 401K account.I saw the house and put a verbal offer in on Saturday, May 5.All of the papers were signed and the deed exchanged on the 21st, only because I delayed the closing by 4 days.And yet, while my wife and I are adding deck chairs and hanging bookshelves, we're not exactly planting roots.This house is just a rental, not a property we own.I would also want to reinforce the balcony for the second floor.