Posted on: 16th Feb, 2010 02:23 pm
Can I use my 401K/IRA to purchase a motorhome without penalty if I'm not 59 1/2 years old? Or do have to wait? I do not want to pay early withdrawal fee or taxes, but was told a motorhome qualifies as a house as long as it has a bedroom, bathrrom, kitchen & closet.
Hi Mickey,
As far as I know, a motorhome does qualify as a house if it is equipped with basic facilities like sleeping, cooking, etc. If you take a loan against your motorhome, you can deduct the interest you pay on the mortgage on your taxes. Thus, I believe the 401k withdrawal will not attract any penalty if the motorhome qualifies as a house and you use it as your primary residence. However, withdrawing money from retirement accounts is not advisable and you should consult a financial advisor before withdrawing money from your 401K account.
As far as I know, a motorhome does qualify as a house if it is equipped with basic facilities like sleeping, cooking, etc. If you take a loan against your motorhome, you can deduct the interest you pay on the mortgage on your taxes. Thus, I believe the 401k withdrawal will not attract any penalty if the motorhome qualifies as a house and you use it as your primary residence. However, withdrawing money from retirement accounts is not advisable and you should consult a financial advisor before withdrawing money from your 401K account.