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Chief
Don’t do this even if you are trying to avoid paying PMI
Generally not a good idea to withdraw from retirement. Try to live within your means for now. Of course, I don’t know your full situation, but you do want your taxes to be withheld upfront as you are already “struggling”
I did this when I was at PwC. I don’t recall any taxes. You immediately start paying yourself back as the withdrawals are taken from your paycheck.
That would be a loan vs. a distribution. Not sure which one OP is looking for based on their post.
Presumably you’re wanting to do a 401k loan. That can be done on the Benefits Express site.
Know that if you leave or lose your job before it’s paid back, the balance is due or else the IRS will make it a taxable/penalized withdrawal. That and the opportunity cost of the money not being invested during the payback period are the main drawbacks. Interest on the loan is paid to yourself by additional investment to the 401k, so that’s a good thing.
Everything Director 2 said, if you add your banking info before you request the 401k loan it’s like maybe a 2 day turn otherwise they mail it takes a week or so. If you want it quick add your bank routing and acct info first. I just did this myself as I was purchasing a home before selling mine. So just needed temp float. I could pick how I wanted to repay. It’s does not count against debt to income ratio.
I would reconsider doing this.
Can you take it as a loan instead of a distribution? This way you pay it back with interest. Borrow from yourself and pay back to yourself.
I wish I could make a futures bet on your career. You will probably be an OMP.
You need to call whoever the provider is and start working out with them what this looks like. There will be forms. If you are a first time home buyer I’m pretty sure you can avoid taxes.
I don’t work in PA so not chance of that 🤷♂️
You can do it as a loan not a distribution. Interest rate is like 1%. Lot of people here don’t know this and say “don’t do it” thinking it’s a distribution (which they are correct in saying you should never do). Call BenX or go to the website and you can see the details.
Yeah 1.something% when I checked a month or two ago. Maybe 1.25% or something.
Does the firm or company know when you do this?