There are ways that you can withdrawal money from your 401K, 403B, Roth IRA, and Traditional IRA, that will allow you to avoid the 10% early withdrawal penalty and in certain cases, even avoid paying taxes on the distribution if it’s used as a down payment on your primary residence. This video will walk you through 401k loans, hardship distributions, Roth IRA withdrawals, the traditional IRA first time homebuyer exception, and the 60 day rollover rule.
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If you take out a loan from your 403b, to buy a house as your primary residence, do you have to pay taxes?
basically we live in a messy spaghetty-tangled society where rules are made to be not so simple..lol
if you leave yor emlployer you then have to somehow pay it BACK but NOT via Payroll withholdings** meaning you have to pay it UP IN FULL….
I collect Social Security, but I want to take out $35000.00 from an IRA to buy a house. How much would I have to pay in taxes.
What if it’s for an investment property
What happens if I borrow from a "fully vested 401k " and want to leave current employer? Will the loan be due immediately or can be paid over time?
Fantastic, thank you!
Thanks for the video! Quick question, I have 403b and trying to take out the entire money out to help buying a house. I’m waiting for the employer verification, do employers determine how much I can take out and do employers ever decline it? The benefit company (e.g. TIAA) has already approved it in their end.
I have a question. I’m going to roll over a pension into a Ira account. Will I be able to pull the 10 k out to buy my new home without penalty immediately? Or is there a waiting period? Also I read somewhere I can pull another 10 k for my husband he’s also a first time home buyer. Will he need to be on the home loan and have a separate IRA Account?
thanks this video is very helpful to me got clear with lot of questions
I have a unique situation where I'll be rolling a 401k from previous employer directly to a traditional IRA. 1) does that count against the 1 time 60 day rollover? 2) are taxes withheld from the amount withdrawn using the 60 day rule? 3) would it be better to do a portion of the 401k rollover direct to IRA and portion we need for bridge dispersed to us?
A couple things: one significant risk factor to consider about longer term 401k loans (especially 10+ year terms!) is that they must be repaid in full at termination or separation from service, which by it's very nature is often unpredictable. If you would be unable to pay it back the outstanding loan balance in full OOP, you would owe penalty (if under 59.5) and income taxes on top of that years income and potentially being fired! Also, there is not double taxation of (trad) 401k loans, even though it is paid back with post tax dollars. The initial contributions were tax deductible, then loan distribution is tax free, thus must be repaid with post tax dollars, and yes will be taxed upon distribution in retirement. It's as if the loan never happened.
Very helpful information, thank you
What if you wanted to invest the surplus after paying the closing cost? Is that allowed?
Very detailed video! I finally get it. Thank you
Thanks for the video. What are the primary residence rules for IRA withdrawals? How long do you have to live in the house?
If I withdraw 20k from traditional IRA to buy the first house, but can only return 5k to the IRA within 60 days. Do I still get penalty on the 20k or just 5k since no penalty on 10k for first time home buyer ?
Does your employer demand a loan officer or mortgage company letter to approve the hardship withdrawal for a first time homebuyer?
This video is perfect!
I like that you didn't give any opinions here. You laid out facts instead. I knew all of the facts I needed already, but I am somewhat sick of everyone saying to never touch a retirement account. My money is my responsibility, and I need the facts so I can make an informed decision, not opinions based on other people making mistakes.
Amazing explanation! Thank you sir!
Thanks so much for this amazing video!