Withdrawing for 401k
Buying a home . Want to pay using funds from 401k.. purchase price 425k. My present home is paidfore and valued around 300 k. I am72 and retired. Also need to plan my first rmd. Thank you.
Terry Says
That’s not a great idea. When you take the money out of your IRA you will have to pay ordinary income taxes on it. That could cost you 1/3 or more of the money you withdraw. And you’ll lose all future tax-deferred growth of the money. And it could cause you to make higher Medicare Part B payments in the years ahead.
Would you consider selling your current house and using the money to pay for the new one? Or do you plan to live in two locations throughout the year?
This would be the perfect time to consult a financial planner who you can trust — a FIDUCIARY, Fee-Only, planner. Find one at wwww.Wealthramp.com.
