I am 23 and amazon only matches 50% up to 4% of my salary so I have been only contributing 4% every month. I am planning to buy a house next year with really low down payment, 3.5% just to get the ball rolling quickly in real estate. Question is, I hear that you can use your 401k for a first home purchase without penalties?? I save around 3k a month from my paycheck into ally bank. Should I put that in 401k instead to reap lower taxes and pull it out the next year when I find a house to buy or just keep doing what I'm doing? TC 150k My paycheck is about 6400 a month after taxes. Right now I have 33k in my savings account and 14k in my stock portfolio. About 2.4k in my 401k with amazon. And something called a roll over IRA (I think this is from my previous employer) with ~4.2k I have about 70k in student loans. I pay about 1k a month. Should be done in 5 years. I live in seattle right now and planning to get a house around edmonds or maybe somewhere more east on the puget sound. Goal is to quit engineering and just live off rental income and investing in real estate. Maybe run my own small business to live happily and do what I enjoy every. single. day.
I believe you can pull from IRA and/or 401k for a down payment if it’s your first house purchase. I did this from my IRA about 6 years ago. Laws may have changed since.
IRA not 401k
I thought you can only withdraw 10k from IRA for first time home buyer
Your future you will hate you for withdrawing from your 401k. Maximize annual contribution, and dont touch it unless its an emergency
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You can’t usually - but you can this year up until the end of December if you claim you were impacted by COVID. Just say you got a job offer rescinded due to COVID, that’s enough reason and you can withdraw from your 401(k) without penalties. Do it soon, this ends after December
Can we use ira for deposit on house?
Yes penalty free