Withdrawing 401K at 59 1/2 and using to buy a House.

[Nik Sharapov]

Hello Bigger Pockets forum users, my father of 59 1/2 years old is thinking of taking out his 401K and using it to buy a house in order to pay less taxes due to withdrawal of the 401K funds. Is there a way to do that? Are there tax benefits to doing so?

Thank you.

[Paul Allen]

@Nik Sharapov taking a large lump sum withdrawal from a retirement plan would likely be a tax DISadvantage. Enough to buy a house would likely get the withdrawal/income taxed at higher marginal rates than it would be if he withdrew it over a number of years.