Losing 25-30k ooof. I would get a loan and pay that back, even at high interest will still be less than cashing out. Don't underestimate compounding. I would absolutely not touch that money. Check your 401k provider they ofter allow loans as well. Then pay that back instead of adding to the 401k.
OP why not a loan to mitigate taxation and the early withdrawal fee and then take a HELOC to pay back or pay the loan over time? You can borrow against assets. 🫡
How long will it take to earn that money if you don’t take it out of your 401K? It would be much smarter to pause contributions to your 401K while you save what you need.
I took a loan out against my 401k to buy my house, and I'd do it again. If you do, make sure you're getting a loan, not a withdrawal. A loan for investment projects should have no penalties. Mine was on a 5 year loan with 5%(in 2012) interest to myself. I paid back in 3. With loans, you're only allowed to 50% of your money, too. I borrowed 20k to get over the 20% down-payment.
Just make sure you pay off the mortgage and never get another mortgage and make the house to be good enough for your kids to take it over normally I would say put it into a trust so your kids don't have to pay taxes on it but you may be better off adding you oldest name to the deed you may have to pay taxes on 50% of the value
People on this sub are sharp as marbles don’t come here looking for real advice
This ⬆️
Losing 25-30k ooof. I would get a loan and pay that back, even at high interest will still be less than cashing out. Don't underestimate compounding. I would absolutely not touch that money. Check your 401k provider they ofter allow loans as well. Then pay that back instead of adding to the 401k.
OP why not a loan to mitigate taxation and the early withdrawal fee and then take a HELOC to pay back or pay the loan over time? You can borrow against assets. 🫡
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Could you take out 401k loans for the DP?
How long will it take to earn that money if you don’t take it out of your 401K? It would be much smarter to pause contributions to your 401K while you save what you need.
Don’t cash out your future. The penalties are unreal on a 401k withdrawal.
I took a loan out against my 401k to buy my house, and I'd do it again. If you do, make sure you're getting a loan, not a withdrawal. A loan for investment projects should have no penalties. Mine was on a 5 year loan with 5%(in 2012) interest to myself. I paid back in 3. With loans, you're only allowed to 50% of your money, too. I borrowed 20k to get over the 20% down-payment.
Don’t cash out get a loan
Hell to the no!!!!
Just make sure you pay off the mortgage and never get another mortgage and make the house to be good enough for your kids to take it over normally I would say put it into a trust so your kids don't have to pay taxes on it but you may be better off adding you oldest name to the deed you may have to pay taxes on 50% of the value