Cashing out 401k due to COVID-19 $100,000 PENALTY FREE
Anyone else considering doing this? Is this a crazy plan?
My plan:
My wife and I lost daycare so we're splitting time off to take care of our children.
We have significant cash reserves and 75% equity in current RE portfolio of 5 SFR's
We have several hundred thousand currently in 401k
Wait until market rebounds to pre-pandemic levels, then...
Withdraw $100,000 from 401k, penalty-free, pay taxes over 3 years
Use $100,000 for 25% down payments on two duplexes (30 year fixed mortgages)