Cash out 401k and Roth IRA
Hello guys:
I wanted your opinion on my intention of cashing out my 401k and Roth IRA account to use the money to buy real estate. I think real estate market has better opportunities at the moment and more potential in the long run than the investments in the funds I have in the accounts. I'm planning to use the money to buy my primary residence (not my first property) and so I will be subject to 10% state taxes and 10% penalty. Other than monetary consequences, arr there any other consequences with the IRS? Does my thinking make sense? What is your opinion here? THANKS FOR YOUR TIME.
Most Popular Reply
@Juan Lopez
If you are going to do it, don’t use it for your primary residence. Use it to buy an investment so that you can earn back the penalty and taxes over time. If you just put it into your primary residence it isn’t earning anything for you.