Liquidating 401k to buy home

An individual may also decide to liquidate assets, such as house and land for cash.The cash could then be used to boost his or retirement nest egg or pay off creditors.An investor that is long a stock may decide to sell some or all of the shares held in his portfolio for cash.Liquidating an asset is carried out when an investor or portfolio manager needs the cash to re-allocate funds or re-balance the often the primary asset that the couple has to divide. One is for one spouse to take the house and the other to take a larger share of other assets.The house can be sold and the proceeds split, or one spouse can buy out the other spouse's share of the home's equity.

You therefore have to make a relatively quick decision.The alternative is to “self-certify,” which doesn’t require you to disclose your finances.However, you won’t be able to make new 401K contributions for six months after taking the withdrawal.Second, many employers provide matching contributions to your 401(k) account which can range from 0% to 100% of your contributions.The combined result is a retirement savings plan you can not afford to pass up.Being aware of the 401K withdrawal rules can save you from making costly mistakes.


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