How do you guys feel about using 401k savings ($10k) to help towards the purchase a home?

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I'm not wrong unless they have changed the rules. First time homebuyers can withdrawal up to 10k penalty free.

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KPMG1 is wrong. There is still a 10% penalty for the house. The best way is to borrow against the 401k. I think you are getting confused with an IRA.

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I think it's a bad idea. Your 401K is for retirement so leave it be - just stop contributing to it while you save for your house

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Nothing wrong with it. Assuming your a first time home buyer, its penalty free so why not. Just remember while its penalty free, it's still taxed so it's not truly 10k. You have the option to put a portion of the withdrawal towards taxes or you can take the full 10k and worry about the taxes next year at this time. I did it 5 years ago and wouldn't have been able to swing the hit to my savings without it.

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Guys, get the facts right before posting. There are a lot of different ways to do it, which is why there is confusion and a lot of incorrect info from a lot of people on this thread. This link has a good summary:
http://www.moneycrashers.com/401k-ira-withdrawal-down-payment-house/
Basically, 401k LOAN is tax free and penalty free but has to be paid back. Traditional IRA withdrawal is taxed but penalty free. Roth IRA withdrawal of principal is tax free and penalty free. The ideal method will depend on your personal situation and what you have available.

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You are paying interest to yourself. The only downside is that the payback period is max of 5 years.

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If you borrow from it and don't plan on quitting before you can pay it back, makes sense.

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Yes took distribution 4 years ago to purchase home - taxes in entire amount no penalty on first 10k

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Borrowed it to pay taxes as well. Easiest thing in the world to do.

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From your Roth or traditional IRA, yes

^that info didn't even really answer your question though. Personal opinion, the more down payment you can muster (without killing your emergency fund) the better, so using funds from a 401k/IRA is a great idea as long as you minimize the tax impact.

I used a loan from my 401k and have been paying myself back.

I think I got the information I needed haha

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