QUESTION

401 K withdrawal

Asked on Mar 02nd, 2014 on General Practice - New Jersey
More details to this question:
I want to withdrawal money from my 401K. I do not qualify for a hardship at all. I want to use the money to cover the loss of selling my house since the mortgage is worth more than the value of the home. Plus use the money for a down payment on another house as well. Again I am not in a hardship position. Is this possible?
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1 ANSWER

Criminal Defense Attorney serving Toms River, NJ at Edward J. Dimon
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i would speak with your accountant or your tax preparer for a definitive answer. however, the 401 [k] is your retirement account which is to be used after you are age 59. withdrawals prior to age 59 create both a taxable event [you pay income taxes] and a penalty. i do not believe you can take the money and pay either your mortgage or a down payment. ed dimon, esq.
Answered on Mar 03rd, 2014 at 1:11 PM

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