Paying off mortgage with 401k
Hi Terry coming up to age 59 1/2. Would it be wise to pay off my mortgage with part of my 401k?
Terry Says
Absolutely not! Your 40l(k) needs to keep growing tax-deferred for your retirement. And you’d pay income taxes on any withdrawals, besides losing that future tax-deferred growth!
Keep paying your mortgage, and add extra money each month if you can — and designate it to pay down principal.
