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Use 401k to pay mortgage

Posted on: 24th Apr, 2013 12:36 am
Can you please clarify that if I use my 401K to pay off the mortgage, will it still be taxed and subject to the 10% penalty?
Hi Crust,

Whether you use your 401k to pay off mortgage or any other debt, you will be liable for taxes and penalty if you are not 59 and 1/2 years old.

Thanks
Posted on: 24th Apr, 2013 02:02 am
Hi Crust!

Welcome to the forums!

It will be better if you could avoid taking out a loan from your 401k account. If you do so before the stipulated age, you will be liable for the penalty. Moreover, this is your retirement savings. So, it's better to not jeopardize that.

Feel free to ask if you've further queries.

Sussane
Posted on: 24th Apr, 2013 08:33 pm
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