Profile picture for user5175263

I would like to get my retairment money out to buy a house and pay cash, for a house is this possib.

a house priced around 12,000-15,000 my credit is not good I have some medical bills .
  • August 15 2013 - Taylor Berry
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Answers (5)

You can borrow from yourself from your 401k or other investments but you can be penalized if you take more out than you are allowed to. One good thing is that you must pay it back and you're paying yourself the interest. I'd contact a financial advisor and ask them what your best option is. I'm not sure where you can buy a 12-15k home... at least not in my state. Make sure its a good investment, the right one and then make your decision when you have all the details. I just finished doing a deal where the buyer borrowed money from his 401k for the down payment... So it can be done.

Good Luck!
  • August 18 2013
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Profile picture for SteadyState
Be very careful with this step. You will still need to eat when you retire. You will not be able to eat your house if you loose the house when prices drop and they will drop with rising interest rates!!!
  • August 15 2013
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Profile picture for zuser20140120081814583
Please carefully consider the impact that this will have on your retirement!

Where is you retirement money?  Is it in a traditional IRA?  Roth IRA?  401K w/ you current employer?  401K w/ a previous employer?

If your money is in an IRA (either kind), you might be able to withdraw some of it for a home purchase w/out having to pay a penalty.  This might be limited to a first home.  Try Googling something like "IRA withdrawal home purchase".  You'll still have to pay taxes on the withdrawal.

If you money is in a Roth IRA, you might be able to withdraw some for any purpose w/out penalty, depending on how long you've had the account.  Try Googling something like "Roth IRA withdrawal".  You've already paid income taxes on this money, so you shouldn't have to do so again.

If your money is in a 401K w/ your current employer, you probably won't be able to withdraw it, but you might be able to take out a loan from it.  Check w/ your employer's HR dept. for their rules. 

If your money is in a 401K w/ a previous employer, you might be able to roll it into a 401K w/ your current employer & then take a loan from it.  However, some employers don't allow loans against rolled-over money.    Again, check w/ your HR dept.  You might also be able to roll your 401K into an IRA & withdraw some of it (see above).

Did I mention that you should carefully consider the impact that this will have on your retirement?  I have not even scratched the surface in this note.  A bit of internet research would probably be wise, as would a conversation w/ a financial planner.

(I am not a profession financial planner; I don't even play one on TV.  If you make a decision about this based only on what I've said, don't blame me for the results!)
  • August 15 2013
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You can usually take money out of retirement, but with a large penalty.  You have to find out what the penalty is, and ask yourself if it's worth it.  It may be better in the long run to obtain a loan for the home, and pay it off early with higher monthly payments.  Talk to your financial advisor, and a loan advisor for your best options. 
  • August 15 2013
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Profile picture for JoshBarnettREIB
What does the adviser who holds your money say? 
  • August 15 2013
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