How can I withdraw 401K with Penalty or taxes to purchase investment property?
Pablo asked:
I would like to withdraw funds to purchase and investment property from my 401k. the 401K is with an old employer. What is the best way to get the funds without being penalized or paying taxes? Someone told me to transfer to an IRA account. Is that true?
OK, I am 35 and married.
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I would like to withdraw funds to purchase and investment property from my 401k. the 401K is with an old employer. What is the best way to get the funds without being penalized or paying taxes? Someone told me to transfer to an IRA account. Is that true?
OK, I am 35 and married.
February 15th, 2010 at 9:47 am
No, its not. Penalties are very sever and costly if your not 59 1/2 or you haven’t had an IRA for at least 5 years, regardless of age. Rich
February 17th, 2010 at 11:19 pm
No thats not true. If it was then we’d all do that! U will get penalized if u withdraw from ur 401k and u will have to pay it back. U can only take out 1/2 of what u have in ur 401k by the way. LocalBoy
February 19th, 2010 at 9:38 pm
Not enough information……..how old are you………makes a 10% difference……… kapn
February 22nd, 2010 at 11:52 pm
No.
There are no exceptions to paying the tax.
There are a few exceptions to paying the 10% penalty but this is not one of them.
The same goes for IRAs. Wayne Z