• @MsPenguinette
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    449 months ago

    Fun fact: you can withdraw from your 401k. While there is a hefty tax penalty, you still can do it. Maybe you can get a down payment on a house or pay off student loan debt. Just make sure you withhold taxes from your payout. Don’t get caught with that bill at tax season

    Especially handy if you have a job with good matching and instant vesting. Of course, this is not finacial advice, but it is an option that exists.

    • AwkwardLookMonkeyPuppet
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      9 months ago

      You can use $10k from your 401k for a down payment on a house with zero penalty. If you’re married, then your spouse can do the same. So now you have $20k for a house down payment! With an FHA loan you can buy with as little as 3.5% down, which your $20k should cover. Weee!

      • @[email protected]
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        119 months ago

        Heh, here in Australia I’d need over $100,000 for a down payment.

        Many are 20% here, so really I’d need over $200,000 just to make the initial payment.

        • AwkwardLookMonkeyPuppet
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          89 months ago

          You need that here in the USA too, but with an FHA loan, or a first time buyer program on a conventional loan the percentage needed is reduced. Although they hit you with some pretty hefty fees when you take advantage of those programs. The FHA charges an up-front fee, and conventional loans hit you with PMI which equates to hundreds of dollars per month.

      • @cm0002
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        19 months ago

        Why even bother with a down payment, lots of loan options out there for 0%

        • @EtherWhack
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          69 months ago

          In most cases, it’s better to save up for a down-payment to cut off a chunk from your loan along with the portion of interest with it. You also tend to be able have loans with better options available to you.

    • Flying SquidOP
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      309 months ago

      Bold of you to think we all have 401ks.

        • Flying SquidOP
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          39 months ago

          Age has nothing to do with it. I’m 46 and I don’t have a 401k. I’ve never worked for a company that offered me one and I can’t afford such a thing out of savings I’ve never had.

    • @[email protected]
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      119 months ago

      You can also borrow against it sometimes. Basically b3ing a low interest loan to your self with the fees being lower than the penalties

        • @[email protected]
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          49 months ago

          100% its a loan. Useful for things like down payments or cars, etc. Things that help you save money/make money reliably enough to pay it back.

          Still better interest then any other loan too

        • @MsPenguinette
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          39 months ago

          Or have to pay off the entire loan within a year of leaving the job

    • @johannesvanderwhales
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      69 months ago

      If this is your plan you’re probably better off rolling it over into an IRA, and then doing a qualified distribution. There are a number of qualifying events that can be used to avoid the penalty for early withdrawals.

    • @[email protected]
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      59 months ago

      Yep, my plan is to pull all the money from my 401k as soon as my employer funds are vested. Paying down debt and living a comfortable life now seems like a better bet than hoping retirement happens.

    • @[email protected]
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      39 months ago

      In Switzerland there is a retirement fund similar to the 401k from which you can withdraw if you definitely leave the country or if you want to use the money to buy your main house.

    • @felbane
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      19 months ago

      just don’t get caught with that bill at tax season

      Meh, I’m pretty sure the IRS will agree to a payment plan for a small monthly fee on top of the payment, which at this point is almost certainly less than what I’m paying in these fucking usurious interest rates.