I have around 100K in 401K account with fidelity from my previous employers. I recently moved to another company and my total amount in new company 401K TransAmerica account is 5K. I called Fidelity today and found that I cant take loan against 100K of accumulated funds as I no longer work there. What is my option right now to take a loan against my 401K money? Transfer all funds from Fidelity to Transamerica and get loan from Transamerica? I desperately need this money to buy my primary house. :(
Double check your current 401k plan rules and whether or not rollover funds are eligible for a loan
I don’t think you can’t take out the full amount? Isn’t there a cap to how much you can borrow for a house? But yes you would need to transfer it. Although I wouldn’t recommend necessarily buying that house if you need to take money out of your 401k if you only have $100k. That money will be useful for retirement, and better to have that there for compound interest. If you take out a majority, it’s hard to get it back into the account given the 401k maximum each year.
You should rollover the amount. Otherwise you should withdraw. That’s the only option. Once you rollover you can take a loan against it. You can take max of 50 %. Current rate is around 7.5.
You can do a hardship withdrawal- Using funds for a down payment on a primary residence is exempted from the 10% early withdrawal penalty. The withdrawal will be taxes as ordinary income. Fidelity will likely withhold both federal and state taxes.
This is a terrible idea
Not a good time to buy real estate
Especially if you're going to raise money for the down payment by selling stocks after a 20-30 percent drop.
Yes
Uh, you should of taken it out before the market tanked, don't do it now ...
This is a bad idea.
Promise me you won't do this
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Talk to trasamerica. I think after rolling over your money from Fidelity to transamerica you would be able to to take loan against your 401k account. If there are charges for rolling over than transamerica should cover that.