Can I Use My 401k To Buy A House?

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One of the most common questions we receive about 401k plans is ‘can I use my 401k to buy a house?’  If you have a sum saved in your 401k it may seem like the obvious place for you to obtain the downpayment you need to buy a property.

While it is possible to use your 401k to buy a house, there can be significant downsides to this course of action.  Keep reading to find out everything you need to know about using your 401k to buy a house.


Making a 401k hardship withdrawal

401k plans are intended for retirement savings.  So, if you want to take money out of your 401k plan early, there are penalties and taxes in place to deter you.

Congress did make provision in the 401k plan rules to allow you to access their savings in extreme circumstances.  However, the rules don’t allow you to take money simply because you’re inconvenienced.  You have to prove you need the money for a certain purpose such as paying funeral expenses or buying a main residence.

In addition, if you are younger than 59 ½, any money that you withdraw from your 401k to buy a house is subject to the appropriate income taxes.  You will also pay a 10 per cent ‘early withdrawal penalty’.

Keep in mind also that your employer does not have to offer the ability to make a hardship withdrawal.  You should therefore check that such a withdrawal is available to you.

 

A 401k loan

An alternative to making a 401k hardship withdrawal to buy a house is to consider a 401k loan.

Most 401k loans are agreed regardless of your needs and it can be very easy to obtain a loan against your retirement plan.  When you borrow from your 401k plan you also benefit from the interest that you pay.  This is because the interest that you pay goes back into your 401k plan.  For example, if you borrow $4,000 and pay back $4,750 in total, the extra $750 goes into your plan.

However, there are also disadvantages of borrowing from your 401k to buy a house.  You may have to pay fees for the loan and you will be foregoing some funds from benefiting from tax deferred growth.

In addition, if you default on your 401k loan payment it is treated as a distribution.  This means that your money is taxed and you have to pay the 10 per cent early withdrawal penalty if you are aged under 59.5.

Using your 401k to buy a house

In summary, the answer to the question ‘can I use my 401k to buy a house’, the answer is ‘yes’.  However, for the reasons mentioned above the costs may not be worth it.  You may be better considering other options such as borrowing money from friends of family or delaying your house purchase until you can save up more of a downpayment.

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Total 59 comments are posted
  1. It’s also worth remembering that taking money out of your 401k has a more serious consequence – namely that you leave your retirement fund with less money than you expected.

    As well as the amount you take out of your 401k (and the taxes and penalties) you also lose any potential growth on that money between the day you withdraw it and your retirement.

    This could end up costing you thousands of dollars and leaving you in a more difficult position when you come to retire.

    Posted by : Lauren
  2. Lauren – thank you very much for your comment. You’re absolutely right, and it’s another reason why it can be a bad idea to take money out of your 401k to buy a house.

    If anyone else has advice on this subject, please leave it in the comments below.

    Posted by : admin
  3. What are the tax consequences of a 401k loan? Does the loan amount have to be claimed as taxable income in the first year of the loan? Or does the fact that the loan repayment is made with after-tax dollars handle the tax component of a 401k loan?

    Posted by : Frank
  4. I retired from my position to take care of my Dad. He has just passed away and I have been thinking about buying his house. Since I have not worked in 10 months (and still don’t have a position) I cannot get a loan to purchase. The amount of the mortgage loan would be small compared to trying to make it in an apartment with all the bills. I am 57 so I cannot withdraw from my 401K yet, but, in the long run if I purchase a house even if I pay penalty and taxes wouldn’t it be cheaper than a 30 year mortgage and its interest?

    Any suggestions?

    Posted by : Carla
  5. What if my 401k is from a previous employer and in a totally separate account from my current employer at my bank? Same difference – meaning early withdrawal penalties still apply?

    Posted by : Alice
  6. Can I use my 401k to pay off my house without penalties if I’m over 59 1/2 ?

    Posted by : Morten
  7. I m trying to buy house but I have $21,000 thousand in 401k I m trying to with drow what is my full penalty.

    Posted by : Anonymous
  8. Can I able to use my 401 K to pay my deposit & my first rent payment of my new future apartment? I can show prove that the money its for my future apartment & not personal use!

    Posted by : Oscar
  9. Can I use my 401k to buy a house for investment purposes only. It would be a rental property until the housing market has recovered. Then it would be sold and the money plus profits would go back into the same 401k account.

    Posted by : Sharon
  10. I’m 64 and plan to work for another few years. Can I take money from my 401 k, not a loan, a withdrawal and be penalized?

    Posted by : Mario
  11. Can somebody/anybody who are knowledgeable to answer all these questions. It’s really so informative for us to know the answers.

    Posted by : Beth
  12. I’m loosing my money from 401k. Is it more practical to rather withdraw it and use it for a downpayment to buy house?

    Posted by : Liza
  13. If you have your own money use it.
    Chances are yer not makin 8-10 percent on that money
    In the market anyway.

    No penalties in barrowing from 401k if for a primary residence.

    Home values are lower now. Just do it.

    Nobody can tell you that the bads outweigh the goods.

    Posted by : Stooltube
  14. I’d like to add that with the way the market is and it’s very turbulant. I would def take the money and have a “physical” asset versus play money that could or could not be there in the following year.

    Sharon’s philosophy is very on point. If you sale your house you are good to go.

    Posted by : Dontae
  15. In my case I would like to bid at a government auction which requires cash within 30 days. Could I get a 401k loan then secure a conventional mortgage within 6 months? No real effect on my 401k.
    Tom

    Posted by : Tom
  16. If I currently have two loans against my 401k, can I still take money to buy a house?

    Posted by : Tom
  17. Are you kidding? Taking money out of your 401k is the best thing you could do. It is a gov’t scam to control your money. I put money in there for the longest time until I realized I could make ALOT more just buying a house and renting rooms out. Not only that, it is almost a guaranteed income compared to the uncertainty of the stock market.

    Posted by : Dan
  18. It is also a bad idea to waste thousands of dollars a month on rent (2k in my case.) If you are young enough to recover from using your 401k to help a home purchase, it is not a bad idea. Some people are not disciplined enough to stuff money away without it being taken out automatically. One thing is for sure; if you purchase a home and pay your mortgage every month, in 30 years you will no longer have a mortgage payment. God only knows what will happen with your 401k by then.

    Posted by : John Walls
  19. My wife and I actually did take 401k money to buy our current home, back in July of this year (2012). I think the basic rule was well stated by my accountant:

    This is a very personal action that requires a lot of scrutiny. However, there are reasons why doing so can be very advantageous if the circumstances are right. A 401k is in the end, just another asset; another pile of money with specific rules on its use. Your goal from a financial perspective should be to examine all your assets and use them in a specific order if at all possible. For this application (buying your retirement home), you will want to consider the 401k asset last but after seeing this house and listening to your plans, I definitely think no matter how you do it, you should buy it, even if you have to do it with 401k monies. Let us just think through all the tax consequences, and the future financial position this will put you in not so we can stop the process, but so that we know where we are headed.

    I paraphrased of course, but you see that my accountant was actually in favor of the idea, as long as it was justifiable from both a personal and financial perspective. To give you an idea of how complex and personal a decision it is to use 401k money for buy a home, here is the rather lengthy and involved thinking that my wife and I went through to get where we are.

    1) There is a history in my family of the men dieing before attaining retirement age. Dad died at 55, younger brother died at 45. Uncle died at 40. Additionally my mother has had cancer five times and beat them all but you get the idea. I am 50. Although noone has told me I am on the short list, I can based on family history, make an argument that I won’t live to see a long stretch of retirement years. If this is the case, then what good is my retirement money if I won’t live to see any of it. Though this is not the only factor to consider, I must consider the percentages that I will live to use my 401k money or not and given my family history, my percentages are different from others. So using some of it now, for a home that will appreciate in value seems like a good idea at least on the surface. I get benefit from the money now by living in a wonderful home, and if I live long enough benefit from it later too (reverse mortgage?).

    2) the time of double digit returns is long gone and won’t be back for some time. At least that is what I think. My 401k is currently doing rather poorly. I am not loosing any money but it is not making a lot either. So what is the difference between getting 3% interest income less fees on a 401k or avoiding paying 3% on a loan?

    3) the new home is vastly superior to the old one. Someone suggested the new house is 4 to 5 times the old one based on size, acreage, utility, comfort, prospects for future value, etc. Additionally, in my market home values bottomed out in June/July of 2012 along with interest rates. This is one time I got in on the ground floor. I had been watching the market for two years so I kept seeing home values in my local area (including our then current home) drop. At one point my town was THE #1 WORST area in the country several months in a row for home depreciation.

    4) the cost of money and the value of money over time, ment the value proprosition for us personally was huge. In the end, the new home will cost half what the old one did yet it is 4 to 5 times the house. Here are how the numbers work out…

    in 1990 we paid 140,000 for the old house @11% for 30 years w/20% down.
    in 2012 we paid 285,000 for the new house @2.75% for 15 years w/20% down.
    ** a 2012 dollar is worth 54 cents of a 1990 dollar (simple inflation adjustment)

    The math to equate each transaction is easy. Assuming we stay in the home long enough to pay off the mortage and thus own it:

    the old house cost us 412,000 in 1990 dollars.
    the new house will cost us 387,000 in 2012 dollars which = 209,000 in 1990 dollars after inflation

    WOW, we are paying half for 4 times the home. You can’t beat that. This is the state of realestate in most of the country. I am just sorry that many more people cannot take advantage of the low home prices and low loan rates to improve their situation like we were able to do. I was willing to raid my 401k for the down payment because I wanted to live in a way better home.

    5) the accountant said, use assets in a specific order, basically: (1) if possible use a Hubbard Clause and try to sell your current home before you buy this one, (2) use other funds next that don’t incur additional taxes and penalties (3) take a 401k loan before a withdrawel, (4) withdraw from yhour 401k money last if necessary. We tried, but in then I knew it will be six months to a year before we sell the old house, and we don’ t have saving anywhere else (spent them on college for the kids).

    Though there is more detail, I have talked enough. You get the idea right? We did not buy to make money but for a place to live a long time (long enough to pay off the mortage and own), although in reality we will make plenty off the new home both in increased consumption because it is such a better place to live, and because of future value of this property compared to the old one. And we weighed our personal expectations for things like how long we expected to live etc, and what kind of place we need now given the kids are off in college (entering empty nest time).

    In short, do not rush into a decision to use your 401k to buy a home. However, do not let people tell you it is a stupid idea. For some, possibly many given today’s market conditions, it may be a very good idea. Even with penalties paid, it is a great move for us and might be for you. I recommend you discuss you plan with your accountant. Be prepared to discuss why in great detail, otherwise you have not thought enough about it and so should not be doing it.

    Good luck.

    Posted by : FlaviusMaximus
  20. I heard Oresident Bush passed a law about no taxes if you withdraw money from your savings (401K) for primary home buyers that will end on dec. 31/12.

    Posted by : Juan Villasenor
  21. I dont understand what the big deal.. Im 30 yrs old and at the age of 28 I borrowed 3000.00 so I can put down for a car since my used one was breaking down on me and I need a reliable car to get to and from work… I simply called netfidelity it was no hassel nor any penalty’s and the money would be payroll deducted in installments of 60 bucks a month… I also have the option to make additional payments thru my account in netfidelity… It took 3 days to receive the check from them and took me 5 months to pay it back since I made additional payment on top what they were payroll deducting. This is the best way if you need a loan… One you paying yourself back all the money and interest not a bank and second if you need for a house or car that is worth while then I say do it…

    Posted by : GeonCarlos
  22. Juan – where did you find that information? I am looking to purchase shortly with $ from a 401k from my previous job. My guess is that it would have to be a withdrawal and not a loan, since I am no longer employed at that place. (I am employed elsewhere with another 401k.) Is that right? What would be the penalties?

    Posted by : JBK
  23. JBK- I cannot borrow money out of a 401k from my previous job, if I take the money it will be a distribution, which has a 10% penalty, if I’m under 59 1/2 years of age (exception may apply) plus taxes to be paid ( you may call the plan manager ex. Fidelity for guidelines and rules about your 401k plan or HR from previous employer) and in your new job 401k plan it may take 5 years to be vested 100% before you may be able to take a loan on this 401k account.

    Posted by : LAA
  24. JBK, most plans will allow you to roll over your previous 401k. Then, if your new plan allows, you can take a loan from total amount. It’s usually up to 50% of the total assets with a max of 50k. You’re plan administrator should be able to tell you and help you do the rollover.

    Posted by : SM
  25. I withwrew mony from my 401k in 2012 for a down patment on a house, but won’t be closing on the deal till Feb.1 2013. Will I have to pay the 10% penalty?

    Posted by : jerry
  26. Jerry – Thank you for your question. I understand that the 10% penalty applies in pretty much all cases. The exceptions are extreme: if you become permanently disabled, have to pay significant medical expenses etc.

    Posted by : admin
  27. The penalty does not apply to loans from 401 k’s just distributions

    Posted by : Laura
  28. i withdrew from my 401k to put down on our first home- best thing i ever did .
    you may get a 10% penalty, but you arent getting the early with drawl penalty which is about 30% if i am correct.

    MY 401k has lost thousands of dollars and i will never get it back
    and to borrow on your 401k do it ,if you have to – at least you are using it and not losing it.
    and you dont get a penalty at all if you can pay it back eekly or bi weekly

    Posted by : unknown
  29. My 401K is through T Rowe Price – I called today and they said i was allowed up to a 50,000$ loan against my account. no pentalties or taxes paid since it will be used for a down payment on my primary residence. I can chose the time frame to repay (up to 10 yrs) thru payroll deductions. Because it is a loan NOT a withdrawal I am not taxed. Interest is 4.25% but I will be paying that back to myself essentially. The ‘cost’ is that I will pay back with post tax dollars and of couse lose the ‘earnings’ that the 401K would haev gotten me (which is about 3-5% lately with the weak market). The one part I do not like is that I can not pay extra to pay the loan off early – BUT I can pay the lump sum in full as a one time pay off so I will need to create a seperate savings account to start placing extra money in for repayment. I am thinking of doing this to avoid PMI insurance which would be about 200$ a month …….we are upsizing our house but with historically low interest rates I really want a 15 yr mortage with a 20% downpayment to pay the house off quickly make large prinicple payments.

    Posted by : Tina
  30. im going to build my own house in 4-5 months. we need to buy land first and we found some.
    was think of borowing from 401k (50,000.00)to purchase the land.
    then ill be going to bank for construction loan to build.
    it will cost me 350,000 including land to build, when done the house will be worth 425,000
    will the bank take what i borrowed from 401k in there mortgage. then i would have
    401k loan paid off in 6 months.

    Posted by : es
  31. My husband and I took out a $10,000 401K loan to assist with the down payment to buy our first home. We had about $20,000 already saved for the down payment, but by taking out the 401K loan we were able to increase our down payment to about 15% of the value of the house. That helped us get a lower interest rate of 3.5% on our mortgage, and reduced our monthly mortgage payments by about $290.

    I was still able to contribute to my 401K, and had an $85 taken out of each paycheck to repay the loan. All of the payment, including interest, goes back into my retirement account. I can make additional payments at any time and should have it repaid within a year.

    If I were unable to repay the loan within 10 years, or if I leave my job and do not repay the loan within 6 months of termination of employment, I would then have to pay the taxes and 10% penalty for an early withdrawal. However, I have been at the same job for five years and have good prospects at my company.

    A 401K loan is something to be considered on a case by case basis; personal circumstances vary and a good choice for me is not a good choice for everyone. People should at least consider the option, especially with mortgage interest rates and home prices where they are today. Five years ago I would never have dreamed that I could buy a house like this.

    Posted by : Natalie
  32. Some people are missing the point. This money will be used for primary residence. So if you are paying $2000 a month RENT, you will never get that back. Let’s see, that’s losing $24,000 per year. Tell me wise ones, would you want to lose $24,000 per YEAR because you don’t want to upset a nest egg that’s earning 1.5% per year. If you don’t own and rent, that’s losing way more than you are able to save, unless you have 2M in your 401k.

    Posted by : swany65
  33. Im young, 27 years old to be exact. I have been with my company for 10 years come a few months. My company was at first family owned but recently sold to some giant conglomerate 2 years back. In just 2 years I have put 15k in the 401k. In my previous 7 with the old company all I had in my 401k was 1600 dollars. I was vested the first year. Where dide the 5 percent a check go in that 401k. Now im 27 looking at my first home and deciding if I want to say f it to having a 401k at all. Look at this world we live in. Would I be wrong doing so?

    Posted by : Bryan
  34. Natalie – thanks very much for your comment and for sharing your experiences.

    Posted by : admin
  35. I’m a little confused … Does the 10% tax penalty definitely apply for the year in which the loan is made (for the purpose of a down payment on a house purchased that year), or does it only apply in the event that one leaves a job and/or doesn’t repay by the end of the loan term (e.g., 10 years down the line)?

    Posted by : BBMariah
  36. BBMariah – The additional tax on an early distribution is 10% of the taxable amount. The amount you take is counted as taxable income in the year you take the cash. Remember that the 10% tax is in addition to regular income taxes.

    Posted by : admin
  37. You can take a loan against your 401K and pay it back with no penalty as long as you work for the company where you take the loan from. Once you leave that company any money that you still owe will be subject to a penalty. You have longer to pay a loan from your 401K that you use for a down payment on a house vs. getting a 401K loan for any other reason. I think you have 15 years to pay back the loan for a house and 5 for a loan for anything else.

    Just received confirmation from my 401K representative.

    Now go take that information to the bank!

    Posted by : Truth
  38. Let me understand this…..I put my money into this account, the “system” minipulates the value so I lose my real money, then they tax me, and charge me an early withdraw fee of 10%????? How am I better off with this?

    Posted by : Government Rape Victim
  39. How does a mortgage company look at this? If I take a loan against my 401k to buy a house, is it more difficult to get the house loan approved? I want to buy a house that is $500k. I have $50k for a 10% down payment. If I borrow another $50k from my 401k that will make 20% down, which is good. But on the other hand, the bank can say I have $50k more debt that I have to pay back, which upsets the debt to income ratio.

    Posted by : PorknBeanz
  40. I just got waxed by the IRS on my with draw to buy my first home, took out 38k and had it taxed ( hard ship ) and figured I was good, now after taxes I owe 10% and now it was added ontop of my income and that sent me into the next tax bracket and I owe more to the goverment.

    Posted by : Bryan
  41. I am thinking about borrowing from my 401k to fund the purchase of a new home. My employer’s guidelines state that if I leave the company for whatever reason, I have 60 days to pay off the loan in full or be subject to the 10% penalty for early withdrawal.

    Can I borrow from my 401k, then quit and work for another employer who has a similar feature where you can borrow from your 401k, and “roll over” the debt to the new employer’s 401k plan?

    If the answer is “no,” then after paying back the current 401k loan to my previous employer and rolling the funds over to the new employer’s 401k plan, would I be able to borrow for a home purchase from my new employer’s 401k plan?

    Posted by : 401k interested Borrower
  42. GVR – Your not.. and if we see the market crash that so many are predicting the govt will just steal the rest. spend it while you can…

    Posted by : victim 2
  43. Just because you are over 59 1/2 doesn’t mean your free from excess taxes.What I found out when I withdrew several thousand from my 401k, sure I was Taxed 20%. But what I didn’t see coming was even though I paid the tax, the amount I withdrew from my 401k was also added as income at tax time. It had put me in a higher tax bracket therefore Iam now paying up the ying yang in taxes. And to top it off , Iam retired on a fixed Income. Don’t withdraw it! Take it as a loan .

    Posted by : retired n hurtin !
  44. IT’S AMAZING THE MONEY YOU PUT IN YOUR 401K IS NOT YOURS .I NEEDED SOME MONEY TO HAVE MY PARTNER CREMATED AND PUT IN A NICHE AT A CEMETARY BECAUSE HE HAD NO INS.HE WAS 71 YRS OLD. GUESS WHAT HIS ASHES IS AT MY HOUSE. BETTER OFF PUTTING YOUR MONEY IN A SAVING ACCOUNT

    Posted by : RICK
  45. Wow, what an interesting bunch of characters posting here, a few saavy ones, but mostly just a sideshow. Do you some of you really have such a fuzzy understanding of things in general, that you think this is just the “system” and “government” manipulating things? How cute, better get back to the compound and your 12 wives. Please, nobody forced you to fund your 401k, you could have kept the money to begin with. If you want to take out your tax-deferred money from your 401k, then obviously you must deal with the consequences. There is no hope for America.

    Posted by : amyjo9
  46. A little arrogantamyjo9?

    Posted by : Also
  47. I am going through a divorce and need to buy a second residence while trying to sell my current home. If I withdraw from my 401k from a previous employer, would this be considered a “hardship withdrawal” and would I get taxed heavily? Also, since I no longer work for that company could I withdraw the entire amount as long as it’s less than $50,000? Does the money withdrawn get taxed twice….once when withdrawn and the second time as earned income at the end of the year?

    Posted by : Tom
  48. Well, not sure why many here claimed the 401K system (or government) stole their money, they are worse off with a 401K account. Your 401K value shrinks when the market is not doing well (like the financial crisis in 2008) but the account swells when market recovers (like starting in 2010). Unless you are in a life-n-death situation, as long as you don’t temper with your fund in your 401K when market plunges, it will recover, often faster than one anticipated. I was really surprised to see many folks took their 401K money out after seeing their account balance shrinks between 40% to 60%, trying to stop the depreciation. But when the market recovered, they were too late to put the money back into the 401K account to enjoy the double-digit rebound 3 years in a roll. Ended up with the worst strategy ever.

    I started my 401K in July of 2002 which was not far after the tech bubble burst. As of December, 2012, the 401K account balance has close to $160K, which $114K comes from my bi-weekly contribution & company matching. That means, the remaining $46K comes from return-on-investment. Not bad in this 10-year period. Did I move the fund around when the financial sector and real estate sector were doing great between 2004 and 2007? Nope. Did I panic and do something stupid with the fund when the market crashed in 2008 and remained submerged in 2009, 2010? Nope. Today when i’m looking at the extra $46K in the account, I’m pretty happy. For layperson like myself who is not financial experts, doing nothing seems like the wisest strategy. Why touch it when you don’t need to? It’s a retirement account afterall. Only do that if you absolutely have no other option.

    Posted by : Average Joe
  49. I completely agree with Amyjo99 … seriously folks, when you signed up for your 401K, you should have received a packet of information explaining to you all of the benefits, consequences, penalties, etc. With the internet, you can ask any question, google information, etc. that can help you make an informed decision when taking out a loan. A very informative page is:

    http://moneyover55.about.com/od/RetirementAccountWithdrawals/a/What-To-Know-Before-Cashing-Out-401k.htm

    I think most folks here just didn’t handle their finances well, or just aren’t very inquisitive or want to learn as much as possible about money, and want to blame someone … why not the Government.

    Posted by : dosomereadingpeople!
  50. FlaviusMaximus,
    Thank you for sharing your experience and providing some insight. I’m 30 years old, married with two children under age four. We own a townhouse, but really want to get into a house before they enter school. Coming up with a down payment is our biggest hurdle. Your reasoning helped shed some light on our conumdrum. Thanks again.

    Posted by : BigD
  51. We have 600 K in my 401. Going to retire -had big plans. Told the wife we’ll get out of this crazy neighborhood buy a nice house, new Toyota Camry and live happily ever after. NEVER should have used the 401 (tax deferred) as an investment vehicle. When the accountant added 250 K to our adjusted gross the take from the gov would have been north of 70K. I almost threw up on the way home. I don’t believe I’ve ever been this disappointed.

    Posted by : TJ
  52. Its sad to see hard working Americans go to work everyday for a least 8 to 12 hours a day an struggle to own a home .we shouldn’t even be considering touching the 401k we worked hard for .its a shame cause once you get old most of your 401k goes to Meds &doctors bills

    Posted by : james
  53. Tom – With a few unusual exceptions, all 401K withdrawals are taxable as ordinary income. And, you will also have to pay an additional 10 per cent early distribution penalty tax if you have not reached at least age 59 ½ when you take your distribution.

    While the purchase of a main residence is one of the reasons you can access money in your 401k, you will have to prove that you truly need the cash.

    Posted by : david
  54. When I lived in NYC last year I spoke with a investment broker and he told me that you can remove 10k from your 401k (without penalty) if you plan on using it as part of a down payment as a 1st time home buyer. I am now live in San Francisco and just started to look for apartments. Is this the case?

    Posted by : BryanB
  55. After reading all, I have a specific issue: I’m 70, still work, have 401K in my employer. Want to retire next year.
    If I will wish to buy my first home and pay cash from my 401k plan, how much should I pay fine, tax, and so on? Thanks in advance for sharing information.

    Posted by : mike
  56. BryanB – The 401k rules allow you to make a ‘hardship withdrawal’ in extreme circumstances, including to purchase a main residence. However, you will pay a 10 per cent penalty as well as income taxes, meaning you could lose 30-40 per cent of your withdrawal in charges. A 401k loan may be better, or alternative ways of financing your property.

    Our article http://www.401kcalculator.org/test/can-i-use-my-401k-to-buy-a-house/ may help you further.

    Posted by : david
  57. I don’t know I think the 401k thing is a weird. My wife and I were considering draining our 401k accounts to pay off our house (we only owe 60,000). I am a little frustrated because of what I am reading here. I wish I had been a little more money savvy now and had just put all my money in a savings account. Hell, I would drain all my money right now to have my house paid for. We are both 37 years of age by the way.

    Posted by : Shawn
  58. I currently rent. Does it make financial sense to use my 401k (with the help of some cash) to pay for a house in full?

    This would allow all of my current rent to go back into a 401k or other retirement fund, and also I would be debt free.

    Posted by : Jake
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    Posted by : soldadoras
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