All Forum Posts by: Jeremy Willcoxson

Thank you for your response Doug. Yes I am still with my employer which is a fire department and I plan on staying with this employer for the entirety of my career (10-15 more years). So I unfortunately don't think I can transfer the funds into a SD-IRA like you mentioned. I would be taking the full hit on taxes and 10% penalty.

Hi Everyone,

I want to withdrawal my $88,000 out of my 457b retirement account to assist me in purchasing a rental property. I understand that I will pay 10% in penalty as well as 24% of state taxes on it as well, leaving me with $50-55K. Here is my current situation and why I think it wouldn't be too bad of a financial decision. Please let me know your thoughts.

I live in southern California, I make $200,000 a year. I currently own 3 large SFHs in the area. I rent out all three properties as well as the one I live in right now. I profit around $1,500-$2,000 a month off rental income after expenses. I also have a job with a pension as well. Property values total around 1.85 million and I owe 1.2 million on the homes. 

I have $70,000 in cash currently and I want to take out my 457 money so that it will put me at around $125-130k to buy another rental home. FULL disclosure this next rental will not profit me much because of the high-interest rates but I want to keep it long term even If i am breaking even per month. I am doing it for mortgage paydown every year and appreciation as well. 

Do you guys think I am crazy for taking all my retirement money out? I think having a good pension and 4 SFH in california will suffice in replacing not having my 457b retirement money anymore! I am 31 years old by the way.