- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
What type of retirement acct can you draw from early for down pmt
Posted on 4/2/15 at 10:02 am
Posted on 4/2/15 at 10:02 am
on a first home?
4
Posted on 4/2/15 at 10:17 am to Mootsman
ROTH IRA
Posted on 4/2/15 at 10:28 am to Costanza
It's only up to $10,000 right?
Posted on 4/2/15 at 10:32 am to Mootsman
Posted on 4/2/15 at 11:11 am to Mootsman
quote:
It's only up to $10,000 right?
my understanding is you can take out the principle.
Posted on 4/2/15 at 11:17 am to Mootsman
You can take all of your principal from a RothIRA at anytime for any purpose. This is not a specific program related to a home purchase.
For a traditional IRA you can take up to $10k penalty free, but you still have to pay the taxes on it.
Not really a good decision either way. All you're doing is robbing your future. Save enough to put 5% down and you can get a conventional loan which has lower PMI rates, or even shop a higher rate to get lender paid PMI.
For a traditional IRA you can take up to $10k penalty free, but you still have to pay the taxes on it.
Not really a good decision either way. All you're doing is robbing your future. Save enough to put 5% down and you can get a conventional loan which has lower PMI rates, or even shop a higher rate to get lender paid PMI.
Posted on 4/2/15 at 12:10 pm to Mootsman
401k hardship withdrawal
Posted on 4/2/15 at 12:15 pm to Mootsman
I wouldn't recommend withdrawing from a retirement account to make a down payment on a house. You will almost always come out behind.
It's usually much better to continue renting and saving for a down payment.
It's usually much better to continue renting and saving for a down payment.
Posted on 4/2/15 at 12:25 pm to TigerDeBaiter
quote:
You can take all of your principal from a RothIRA at anytime for any purpose. This is not a specific program related to a home purchase.
For a traditional IRA you can take up to $10k penalty free, but you still have to pay the taxes on it.
Correct so far.
quote:
Not really a good decision either way. All you're doing is robbing your future.
This isn't necessarily true. Mortgage rates are so low right now that taking the plunge may well offset the loss of future earnings on that principal. Nobody really knows what will happen, of course - just saying it isn't quite so cut and dried. You're just shifting your investment from your IRA and moving it to your house, which is simply another way of investing in your future.
Posted on 4/2/15 at 1:44 pm to foshizzle
quote:
This isn't necessarily true. Mortgage rates are so low right now that taking the plunge may well offset the loss of future earnings on that principal. Nobody really knows what will happen, of course - just saying it isn't quite so cut and dried. You're just shifting your investment from your IRA and moving it to your house, which is simply another way of investing in your future.
I agree with the logic, but timeline is key here.
Having said that, if you can't save to put 5% down in a fairly timely fashion or you don't have some sort of savings to put towards a down payment, you probably shouldn't be buying a house. Just my opinion. I'm also in the minority that believes a RothIRA is not a savings account. In my mind, once it's in there it stays in there, barring any type of major unforeseen emergency.
Posted on 4/2/15 at 3:55 pm to foshizzle
quote:
This isn't necessarily true. Mortgage rates are so low right now that taking the plunge may well offset the loss of future earnings on that principal. Nobody really knows what will happen, of course - just saying it isn't quite so cut and dried. You're just shifting your investment from your IRA and moving it to your house, which is simply another way of investing in your future.
Also, it assumes that the Roth contributions were a given IMO.
What if you increased the amount of contributions to the Roth in order to pay for a house down payment down the road?
Posted on 4/3/15 at 12:36 am to Mootsman
If your talking about a 401k plan and it happens to have a loan provision, they will make you take a loan over the hardship.
Posted on 4/3/15 at 2:54 am to coalbe923
quote:
If your talking about a 401k plan and it happens to have a loan provision, they will make you take a loan over the hardship.
A 401K loan isn't necessarily a bad thing. While you have to pay interest, you're paying it to yourself. So, when you finish paying it off, you'll have paid the principal and the interest into YOUR account. So, in a sense you've been earning interest on that money even though it's been out of the market.
And, if you can afford it, you can also be making your normal contributions to the account, so you really don't lose much.
Now, if my understanding is correct, the one negative thing about a 401K loan is that you must pay the interest back to yourself with after-tax dollars. However, when you eventually take that after-tax interest out, it will be taxed to you again as ordinary income.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News