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ucodegen
Participant401K for a down on a house
1) You can borrow against a 401K (depending upon plan structure) and use the proceeds of that borrowing to use as a down payment for a house. The interest paid on the 401K loan will go back into your 401K, but that interest will not be tax deductible, it will be post tax as will principal payments against that 401K loan. My understanding is that during that period that you have the loan out.. you can’t use the amount for investing in the 401K because it will be tied up in a loan to yourself.
*) Risks.. if you change jobs or get laid off, the amount that was borrowed has to be paid back in very short order (either 30 or 60 days.. before it is considered a ‘distribution’ and you get hit with taxes)2) Take a distribution.. taxed at income rate AND 10% penalty.
3) Hardship case can prevent fees, and possibly income taxes.. but it will be very difficult to prove if it is being used as a down payment on a house.
** There may be other ways to use a 401K in this manner, but I don’t know what they are off hand.
Participant401K for a down on a house
1) You can borrow against a 401K (depending upon plan structure) and use the proceeds of that borrowing to use as a down payment for a house. The interest paid on the 401K loan will go back into your 401K, but that interest will not be tax deductible, it will be post tax as will principal payments against that 401K loan. My understanding is that during that period that you have the loan out.. you can’t use the amount for investing in the 401K because it will be tied up in a loan to yourself.
*) Risks.. if you change jobs or get laid off, the amount that was borrowed has to be paid back in very short order (either 30 or 60 days.. before it is considered a ‘distribution’ and you get hit with taxes)2) Take a distribution.. taxed at income rate AND 10% penalty.
3) Hardship case can prevent fees, and possibly income taxes.. but it will be very difficult to prove if it is being used as a down payment on a house.
** There may be other ways to use a 401K in this manner, but I don’t know what they are off hand.
ParticipantRolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
Rolling over the 401Ks to a Roth is a different proposition than rolling over to a ‘Rollover 401K’. Roths have the advantage that distributions on earnings from it are not taxed.. with some possible exceptions… but the contributions on a Roth are post tax while a 401K contributions are pre-tax.
401K to Rollover IRA
When you roll over a standard 401K to a roll-over IRA, there are no tax hits. The best way to do it is direct (not taking a distribution and then re-investing within 60 days).401K to Roth IRA
A roll over of a 401K to a Roth IRA does have a tax hit. The contributions to a 401K are pre-tax, to a Roth they are post-tax. There is a tax adjustment to the amount you roll-over. There are also income tax restrictions. If you have a very low income currently (part time employment, unemployed) the rollover of an 401K to a Roth IRA can be quite effective.401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.401K cash out
Doing a straight cash out of a 401K is not recommended. Not only do you get hit with income tax on the amount, potentially moving you into a higher bracket as well, there is also a 10% ‘surcharge’ off the top on the amount.ParticipantRolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
Rolling over the 401Ks to a Roth is a different proposition than rolling over to a ‘Rollover 401K’. Roths have the advantage that distributions on earnings from it are not taxed.. with some possible exceptions… but the contributions on a Roth are post tax while a 401K contributions are pre-tax.
401K to Rollover IRA
When you roll over a standard 401K to a roll-over IRA, there are no tax hits. The best way to do it is direct (not taking a distribution and then re-investing within 60 days).401K to Roth IRA
A roll over of a 401K to a Roth IRA does have a tax hit. The contributions to a 401K are pre-tax, to a Roth they are post-tax. There is a tax adjustment to the amount you roll-over. There are also income tax restrictions. If you have a very low income currently (part time employment, unemployed) the rollover of an 401K to a Roth IRA can be quite effective.401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.401K cash out
Doing a straight cash out of a 401K is not recommended. Not only do you get hit with income tax on the amount, potentially moving you into a higher bracket as well, there is also a 10% ‘surcharge’ off the top on the amount.ParticipantRolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
Rolling over the 401Ks to a Roth is a different proposition than rolling over to a ‘Rollover 401K’. Roths have the advantage that distributions on earnings from it are not taxed.. with some possible exceptions… but the contributions on a Roth are post tax while a 401K contributions are pre-tax.
401K to Rollover IRA
When you roll over a standard 401K to a roll-over IRA, there are no tax hits. The best way to do it is direct (not taking a distribution and then re-investing within 60 days).401K to Roth IRA
A roll over of a 401K to a Roth IRA does have a tax hit. The contributions to a 401K are pre-tax, to a Roth they are post-tax. There is a tax adjustment to the amount you roll-over. There are also income tax restrictions. If you have a very low income currently (part time employment, unemployed) the rollover of an 401K to a Roth IRA can be quite effective.401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.401K cash out
Doing a straight cash out of a 401K is not recommended. Not only do you get hit with income tax on the amount, potentially moving you into a higher bracket as well, there is also a 10% ‘surcharge’ off the top on the amount.ParticipantRolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
Rolling over the 401Ks to a Roth is a different proposition than rolling over to a ‘Rollover 401K’. Roths have the advantage that distributions on earnings from it are not taxed.. with some possible exceptions… but the contributions on a Roth are post tax while a 401K contributions are pre-tax.
401K to Rollover IRA
When you roll over a standard 401K to a roll-over IRA, there are no tax hits. The best way to do it is direct (not taking a distribution and then re-investing within 60 days).401K to Roth IRA
A roll over of a 401K to a Roth IRA does have a tax hit. The contributions to a 401K are pre-tax, to a Roth they are post-tax. There is a tax adjustment to the amount you roll-over. There are also income tax restrictions. If you have a very low income currently (part time employment, unemployed) the rollover of an 401K to a Roth IRA can be quite effective.401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.401K cash out
Doing a straight cash out of a 401K is not recommended. Not only do you get hit with income tax on the amount, potentially moving you into a higher bracket as well, there is also a 10% ‘surcharge’ off the top on the amount.ParticipantRolling the accounts over make it easier to manage.. but with a ‘Roll-over’, you have to be willing to do some of the managing yourself (selection of what to invest in).
Rolling over the 401Ks to a Roth is a different proposition than rolling over to a ‘Rollover 401K’. Roths have the advantage that distributions on earnings from it are not taxed.. with some possible exceptions… but the contributions on a Roth are post tax while a 401K contributions are pre-tax.
401K to Rollover IRA
When you roll over a standard 401K to a roll-over IRA, there are no tax hits. The best way to do it is direct (not taking a distribution and then re-investing within 60 days).401K to Roth IRA
A roll over of a 401K to a Roth IRA does have a tax hit. The contributions to a 401K are pre-tax, to a Roth they are post-tax. There is a tax adjustment to the amount you roll-over. There are also income tax restrictions. If you have a very low income currently (part time employment, unemployed) the rollover of an 401K to a Roth IRA can be quite effective.401K for a down on a house
There is a way to use a 401K for a down on the house without getting a full tax hit. I am not certain of the specifics of it.401K cash out
Doing a straight cash out of a 401K is not recommended. Not only do you get hit with income tax on the amount, potentially moving you into a higher bracket as well, there is also a 10% ‘surcharge’ off the top on the amount.ParticipantThe government produces nothing?
By Definition the government produces public goods
ranging from parks to sidewalks to national defense.The free market sure didn’t produce I-5.
You need to produce better examples.
*Parks are public owned property, not a produced good. The maintenance of said property is a service.. though now they have individual fees on such parks which were initially provided by through general taxes.
*not all sidewalks are done by the gov. I fact, most are done by the property owner as a requirement… as well as roads in many places. This is why you will often see sidewalks, curbs and roads in the middle of new developments before the houses are completed yet.
*national defense.. is a service not a good.
*I-15 was contracted out.. it was not build by the government.. as with virtually all highway work.
ParticipantThe government produces nothing?
By Definition the government produces public goods
ranging from parks to sidewalks to national defense.The free market sure didn’t produce I-5.
You need to produce better examples.
*Parks are public owned property, not a produced good. The maintenance of said property is a service.. though now they have individual fees on such parks which were initially provided by through general taxes.
*not all sidewalks are done by the gov. I fact, most are done by the property owner as a requirement… as well as roads in many places. This is why you will often see sidewalks, curbs and roads in the middle of new developments before the houses are completed yet.
*national defense.. is a service not a good.
*I-15 was contracted out.. it was not build by the government.. as with virtually all highway work.
ParticipantThe government produces nothing?
By Definition the government produces public goods
ranging from parks to sidewalks to national defense.The free market sure didn’t produce I-5.
You need to produce better examples.
*Parks are public owned property, not a produced good. The maintenance of said property is a service.. though now they have individual fees on such parks which were initially provided by through general taxes.
*not all sidewalks are done by the gov. I fact, most are done by the property owner as a requirement… as well as roads in many places. This is why you will often see sidewalks, curbs and roads in the middle of new developments before the houses are completed yet.
*national defense.. is a service not a good.
*I-15 was contracted out.. it was not build by the government.. as with virtually all highway work.
ParticipantThe government produces nothing?
By Definition the government produces public goods
ranging from parks to sidewalks to national defense.The free market sure didn’t produce I-5.
You need to produce better examples.
*Parks are public owned property, not a produced good. The maintenance of said property is a service.. though now they have individual fees on such parks which were initially provided by through general taxes.
*not all sidewalks are done by the gov. I fact, most are done by the property owner as a requirement… as well as roads in many places. This is why you will often see sidewalks, curbs and roads in the middle of new developments before the houses are completed yet.
*national defense.. is a service not a good.
*I-15 was contracted out.. it was not build by the government.. as with virtually all highway work.
ParticipantThe government produces nothing?
By Definition the government produces public goods
ranging from parks to sidewalks to national defense.The free market sure didn’t produce I-5.
You need to produce better examples.
*Parks are public owned property, not a produced good. The maintenance of said property is a service.. though now they have individual fees on such parks which were initially provided by through general taxes.
*not all sidewalks are done by the gov. I fact, most are done by the property owner as a requirement… as well as roads in many places. This is why you will often see sidewalks, curbs and roads in the middle of new developments before the houses are completed yet.
*national defense.. is a service not a good.
*I-15 was contracted out.. it was not build by the government.. as with virtually all highway work.
Participant*ROTFLAMO*
Participant*ROTFLAMO*
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