I am 29 years old, and have $100,000 in my 401(k)plan due to some profitable internet stock picks a few years back.I would like to withdraw some for first time purchaseof a home. Is this advisable? I would like to takeas much as $30,000 for 20% down on a place thatsells for $145,000.Given my young age, I consider $100,000 to be a great sum for retirement investments. I have therest of my life to earn and contribute to that 401(k),and better to pay on a mortgage than rent.Perhaps $30,000 is too great of a withdrawal - What do you think of this idea in general for a youngperson.thanks,PaulieG
Does your plan even allow for hardship withdrawals?Do you realize a hardship withdrawal will allow you to withdraw only your contributions, but none of your income on those investments?Or, are you considering a loan from the plan? That's usually limited to a 5 year payback unless you can convince your plan administrator to make a loan with the house as collateral (mortgage) and it's still limited to 15 years.
>Does your plan even allow for hardship withdrawals?The plan does allow hardship withdrawals for purchase of primary residence, uninsured medical expense, higher educational expenses or undue financial hardship. These withdrawals will allow me to withdrawal any portion of the funds, as that is how the plan is written and I am fully vested.>Or, are you considering a loan from the plan? I am not considering a loan from the plan. This plan does not allow loans.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |