Should I use my 401k for a house down payment?

Question

I have a 401K from a previous job with approximately $6000 in it. I worked for a University Police Dept and left there for a position with a City Police Dept. At my current position I have a really good pension plan so have not contributed to my 401K since I started this job. I am looking at purchasing a home in the very near future and wonder if I should use the funds in the 401K to help with the down payment?

Answer 1

no roll your 401k over and start a 401k with your new job. Try finding a prefoclosure house or a seller who is asking for a price below market value. that 401k is important a pretty good pension with the prices of everything is just not okay. But a house and sell when your retirement money runs out I mean you have alot of options but you will be taxed on the 6k leaving you with not what you thought you would have.

Answer 2

i would try not to use it but if you really want to invest in the house or whatever than do it.  

Answer 3

No!  A lot of retirement plans have penalties for taking money out early - up to half of the money you remove.  Retirement funds should be saved for retirement.

Answer 4

Yes, it is always a good idea to invest in real estate if you can.

Answer 5

NO! Don't use your 401k.  You will immediately be hit with a 10% penalty, plus capital gains taxes if it holds capital gains.  If you need $6000 for this house, you will need it more by the time you retire.  

Answer 6

From the sounds of it, its seems like you have a long way to retire. I would suggest against it since the Tax penalties will be very high. If you are ready to pay the tax penalties then go ahead.

Answer 7

No......

You need your 401K for your future.

Answer 8

I wouldn't use it, unless you have to! Try to save your 401k for retirement

Answer 9

Only if you know that you will be able to pay it back along with making a new mortgage payment.

Answer 10

If you really need the money and it is your only option to get into the house, then I would use it, but by the time you pay taxes and/or penalties, it won't be that much towards your house... I would only use it as a last resort