Ask Terry Questions Paying off mortgage with 401k

Paying off mortgage with 401k

By Terry Savage on August 30, 2019 | Financial Planning / Retirement

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.

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