Is it okay to turn off 401k while saving up for a home?

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Contribute to the 401k then take a loan from it if you need help with down payment. Then you're effectively saving for down payment while minimizing tax liability.

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Never take loan on 401k period.

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You should at a minimum contribute up to the match.

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Yep I decreased from 15 to 8 because of this.

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Contribute up to the match as it’s 25% return on your investment.

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I did this. Worked out well.

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Well I’m 35 so I haven’t retired yet but buying a house and selling it for a 60 percent return was more impactful to my net worth then the 401k contributions over that time span would have been.

I live in a VHCOL city so getting in the real estate game is challenge.

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Would not recommend it as it is a tax saving account. Why do you want to pay more taxes and have lesser for retirement. As long as there is no situation or urgency around buying the house you should look at investments outside of tax saving accounts and divert them to saving for the house. If house is the priority then at least meet the minimum to get the match, that is free money you are leaving on the table

No
Never turn off 401k.
Always max out Roth 401k every year.
Cut something else.

Why should someone always max out their Roth 401k?

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Will the home be a part of your retirement investment strategy? If so, I would say maybe, as long as it’s not longer than 12 months. If it’s not, don’t do it. You’ll be opening a black hole of available cash that will be too easy to access for other things in the future

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