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Updated over 1 year ago on . Most recent reply

Azita S.'s profile image
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Azita S.
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  • Member since Jul 17, 2013
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Azita S.'s profile image
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Azita S.
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Tax, SDIRAs & Cost Segregation

Early 401K Cash out

Azita S.
  • Investor
Posted

Is cashing out a 401K to invest in RE a terrible idea?

According to an online early cash out calculator, I'd be paying a hefty fine and taxes on the balance, receiving less than half the current balance.  I've been contributing to my 401K for 10 years now!!! 

But if the deal goes as expected, the loss in fines and taxes will be make up in no time.  

Any advice or feedback is greatly appreciated 

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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied

I guess you're right about that ;) 

  • Michael Plaks
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