Updated almost 6 years ago on . Most recent reply
Pulling out 401k money for investing
During this whole Covid19 epidemic my 401k investment firm is offering that they will waive the early 15% penalty to pull out up to 100k with no payback. I know there will be taxes due in doing so but I have never seen this happen before and am wondering if I should capitalize on it so I can use this money to invest more into real estate considering the stock market is not doing well anyways.
I very briefly talked with my tax guy and he said I will be taxed 35k if I pull out 100k. I'm assuming 20% federal and 15% state? Even if so I would still fall in the same tax bracket that I am in currently, so if I was taxed that much I would hope I would get some money back at the end of the year. I have a call with him in the next few days so I can fully explain the situation. If you guys have any input or advice it would be greatly appreciated. Thanks