Can I use my 401k to buy a house? Pros & Cons

Accessing 401k funds is one way to help with a home purchase. We discuss the difference between loans and withdrawls to determine which works best for your situation.

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[FlorentGulliver]

Buying stocks might seem easy, but picking the right one without a solid plan is tough. I've been trying to grow my $100K portfolio, but the tricky part is not having clear plans for when to buy and sell. Any tips on this would really help.

[madelineortiz]

Best time to wildraw was last year for the pandemic. No penalty just taxes. I got 30, 000 and only paid about 2, 800.00 in taxes. Got a house and my house as increased 70k in a year.

[blondsciousblondie]

This was very helpful! Thanks for being clear and straight to the point

[anniesshenanigans]

Right before the bottom dropped out in 2021-2022 I cashed mine out and paid off my house. No regrets. No penalty because I was over 55 and had separated from my job. 6 months ago I sold it for double and moved to SW Florida. No way I could have done that if I had let that money fritter away with fees and the stock market bouncing all over the place. And I don't have to "pay back" a stock market that doesn't give a crap about me. I am putting my money in my high yield savings account and if something opens up, I can have immediate cash to do whatever I want with it. Real estate is where wealth is... Not the stock market. NOT 401ks. Those just make money for other people.

[larcydoingthings]

Good share, thanks for making it easy to understand. Also your daughter is adorable!

[juniorsanabria]

So if you pull this money out completely under the age of 59 and a half. I don't need to pay that back anymore other than the 10% penalty fee?

[renelopez]

So, if I have a 4 other accounts to draw from this may be an option as I'm continuing to work for another 20 years

[BronzeGirl]

I thought you can take up to 10k for purchase of a home without a penalty

[nomiralkhier]

I took a loan from 401 k to buy a house . January 2021. I didn’t buy a house after . Now what ? Should I repay the wholly loan or keep doing monthly payments? Any penalties?

[jimroscovius]

There are no pros, but only cons. You NEVER use a 401k for buying a home. You lose the hundreds of thousands that your money would have made.