Withdrawing from 401K for investing

[Tanjaree Turner]

Looking for input regarding the pros and cons of withdrawing from a TSP (= govt 401K) plan that is just sitting to use to purchase an investment property. I'm no longer a W2 employee so I am not currently contributing any funds to it. I'll get hit with all the penalties as I'm under 59 1/2. Worth it? Or not?

[Brett Synicky]

Quote from @Tanjaree Turner:

Looking for input regarding the pros and cons of withdrawing from a TSP (= govt 401K) plan that is just sitting to use to purchase an investment property. I'm no longer a W2 employee so I am not currently contributing any funds to it. I'll get hit with all the penalties as I'm under 59 1/2. Worth it? Or not?

 If this is a qualified retirement account (tsp’s are) then you can transfer/roll this into an SDIRA or solo 401k and as long as the custodian allows for alternative asset investing you can invest in real estate or just about whatever you want.  You can learn more about both here:   SDIRA Solo 401(k)

Depending on the amount of transactions you’ll do it may make sense to have checkbook control.  Hope this helps!