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Updated about 1 year ago on . Most recent reply

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Camron Corona
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Using 401 k as a down payment

Camron Corona
Posted

Is it ever a good option to pull from your 401k to make a down payment? 

  • Camron Corona
  • Most Popular Reply

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    Basit Siddiqi
    • Accountant
    • New York, NY
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    Basit Siddiqi
    • Accountant
    • New York, NY
    Replied

    1) Try to take the 401K loan if that is an option
    2) There may be a penalty if you take out money from your 401k.
    I personally took my money out of a retirement account in 2017 to invest in real estate. 
    I am personally happy with my decision as I made more money with real estate than if I left it in the 401k / IRA.

    If you can make a higher return in real estate than in the stock market, I think it makes sense and the added return will pay for the penalty paid now.

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    Basit Siddiqi CPA
    4.9 stars
    79 Reviews

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