Comments on: Can I avoid paying taxes on a 401k withdrawl? http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/ Thu, 17 May 2012 17:00:45 +0000 http://wordpress.org/?v=2.7 hourly 1 By: digdowndeepnseattle http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/comment-page-1/#comment-1333 digdowndeepnseattle Thu, 12 Mar 2009 04:14:36 +0000 http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/#comment-1333 sure the closing costs are deductible...they always are. Principle payments are not. So you can limit the damage but not by a whole lot. And, you'll be gambling that capital gains taxes when you sell that property will be lower than your current income tax level. sure the closing costs are deductible…they always are. Principle payments are not. So you can limit the damage but not by a whole lot. And, you’ll be gambling that capital gains taxes when you sell that property will be lower than your current income tax level.

]]> By: Thor http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/comment-page-1/#comment-1332 Thor Tue, 10 Mar 2009 12:28:06 +0000 http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/#comment-1332 I recall like 10 years ago, that people had a way to use an IRA for investment in "investment" property. The rules and methods were complicated though, as was the accounting. I am not sure if that applies to a 401(k). At least you would have to convert your company 401(k) to a self directed 401(k) if the company allows that. Mine did. But it will take some work. You should consult a tax and accounting professional. It would be worth the savings if it is possible. I recall like 10 years ago, that people had a way to use an IRA for investment in “investment” property. The rules and methods were complicated though, as was the accounting. I am not sure if that applies to a 401(k). At least you would have to convert your company 401(k) to a self directed 401(k) if the company allows that. Mine did.

But it will take some work. You should consult a tax and accounting professional. It would be worth the savings if it is possible.

]]> By: src50 http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/comment-page-1/#comment-1331 src50 Sat, 07 Mar 2009 01:43:56 +0000 http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/#comment-1331 No. It is pretax money. If you withdraw it, you are taxed on the withdrawal. No. It is pretax money. If you withdraw it, you are taxed on the withdrawal.

]]> By: BeenAroundTheBlock http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/comment-page-1/#comment-1330 BeenAroundTheBlock Tue, 03 Mar 2009 18:04:14 +0000 http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/#comment-1330 Some 401(k) plans allow you to take a loan of one-half of your balance. Some only allow it for certain purposes. If you leave the company, however, many plans require you to immediately pay it all back. You will have to look into the details of your particular plan. Some 401(k) plans allow you to take a loan of one-half of your balance. Some only allow it for certain purposes. If you leave the company, however, many plans require you to immediately pay it all back. You will have to look into the details of your particular plan.

]]> By: Robert M http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/comment-page-1/#comment-1329 Robert M Mon, 02 Mar 2009 16:24:39 +0000 http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/#comment-1329 take a loan from the 401k, money not subject to penalty and you'll be paying yourself interest. take a loan from the 401k, money not subject to penalty and you’ll be paying yourself interest.

]]> By: Ryan M http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/comment-page-1/#comment-1328 Ryan M Sat, 28 Feb 2009 03:57:58 +0000 http://www.secretfinance.com/blog/can-i-avoid-paying-taxes-on-a-401k-withdrawl/#comment-1328 You cannot avoid paying taxes for use in investment purposes. Plain and simple. You cannot avoid paying taxes for use in investment purposes. Plain and simple.

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