401k withdraw for rentals (cares Act )

[Shane Jeanfreau]

Has anyone here withdrawn money from your 401k to invest in real estate. With the Cares Act it allows you to do so with just a 10% penalty till dec 30th. 

[Bob Norton]

@Evan Polaski That's a good question!  Vesting is based on years of service, not balance in the 401k.  However, that's something worth checking out, just to make sure you aren't unknowingly losing funds you've worked for.

@Shane Jeanfreau If you qualify for the CARES Act withdrawal, then it would be a good opportunity to remove funds from your 401k (which normally you cannot do until you quit your job), use them for a few flips, and redeposit the funds into an IRA to get back any taxes paid. Or, you can simply withdraw the funds under the CARES Act and then deposit them into an IRA that you can setup as a self-directed IRA for future RE investing.