How to utilize $9k in a 401k

[Ben Stanley]

I have abt $9000 in my 401k from jobs. I would like to enventually use it towards real estate investing first purchase downpayment, once that opportunity arrises. What is the best method for this? 

Have been reading up on this a bit and it seems if I get it into a roth ira it can be used for downpayment funds eventually with lower taxes removed?

(If this question correlates better to a different forum thread lmk).

[Josh St Laurent]

Quote from @Ben Stanley:

I have abt $9000 in my 401k from jobs. I would like to enventually use it towards real estate investing first purchase downpayment, once that opportunity arrises. What is the best method for this? 

Have been reading up on this a bit and it seems if I get it into a roth ira it can be used for downpayment funds eventually with lower taxes removed?

(If this question correlates better to a different forum thread lmk).

Ben, a few thoughts. You can typically borrow half of your 401k balance as a loan as long as you are working for that company still. If not you can rollover your old 401k(s) into a new 401k. Another option would be to look at a self-directed IRA where you could use those funds to make the down payment directly from the IRA. The last thing that comes to mind would be moving the funds to a rollover IRA and withdrawing them with help from your tax advisor or CPA to qualify for the first-time homebuyer exemption. You would still pay taxes but the 10% early withdrawal penalty is waived for the first 10k.