Is it wise to pay off mortgage with 401k?Any compelling reason to contribute to a 401k if my employer doesn't match?Would you liquidate your 401k to pay off debt in this situation?Paying off mortgage or invest in annuityShould I pay off my mortgage, begin retirement savings, or build my emergency fund?Would it be advantageous for me to pay off these two credit cards and cancel them with a 401k loan?Should I get a Doctor's mortgage or a 15 or 30 year conventional mortgage?Paying off Mortgage with unsecured debtKeep my second 401k or pay a chunk of mortgage?Overpaying or look to pay off mortgageCan I reduce the tax penalty on a 401k loan default by making an additional contribution?
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Is it wise to pay off mortgage with 401k?
Any compelling reason to contribute to a 401k if my employer doesn't match?Would you liquidate your 401k to pay off debt in this situation?Paying off mortgage or invest in annuityShould I pay off my mortgage, begin retirement savings, or build my emergency fund?Would it be advantageous for me to pay off these two credit cards and cancel them with a 401k loan?Should I get a Doctor's mortgage or a 15 or 30 year conventional mortgage?Paying off Mortgage with unsecured debtKeep my second 401k or pay a chunk of mortgage?Overpaying or look to pay off mortgageCan I reduce the tax penalty on a 401k loan default by making an additional contribution?
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty,.everyoneloves__bot-mid-leaderboard:empty margin-bottom:0;
I've been considering paying off my mortgage with my 401k balance. Some particulars, I'm in WA state in the US, and I'll turn 60 in about a week.
I have enough in my 401k with my current employer to pay off the balance of my mortgage. Maybe not quite pay it all the way off, but well within a few thousand either way.
FWIW, I have other investments as well that total roughly $300k that are completely separate from my 401k funds.
My mortgage is currently at 2.75% on roughly $138k-ish balance (I don't have a pay-off amount from my mortgage company, so I'm just looking at the current balance). It's a 15 year fixed loan that matures in 2028. The house is currently worth somewhere between $450k & $500k.
My 401k YTD performance is 16.5%, and 1 year is 10.7%. on a balance (today) of $150k-ish and I'm currently putting 25% of my paycheck into 401k (with a 4% match from my employer).
I'm looking at retiring in about 5 years, sooner if possible.
My question is, given these variables, is it wise (or possible) to pay off my mortgage with my 401k, then bump my 401k up significantly so I hit the maximum contribution of (currently for >50 year olds), $25k / year. I'd also max out Roth IRA contributions for my wife & me as well as our HSA funds (which can also be invested if you don't use them) which are similarly tax exempt.
In my head this makes some sort of sense, but I'm not a financial person.
Is this (A) possible, (B) advisable, and (C) what pitfalls might there be (taxes, penalties, market instability, etc.)? I don't know how to do this calculation so I'm hoping I've provided enough information to get the help.
mortgage 401k
edited 5 hours ago
JoeTaxpayer♦
150k25241482
asked 6 hours ago
delliottgdelliottg
40018
add a comment |
I've been considering paying off my mortgage with my 401k balance. Some particulars, I'm in WA state in the US, and I'll turn 60 in about a week.
I have enough in my 401k with my current employer to pay off the balance of my mortgage. Maybe not quite pay it all the way off, but well within a few thousand either way.
FWIW, I have other investments as well that total roughly $300k that are completely separate from my 401k funds.
My mortgage is currently at 2.75% on roughly $138k-ish balance (I don't have a pay-off amount from my mortgage company, so I'm just looking at the current balance). It's a 15 year fixed loan that matures in 2028. The house is currently worth somewhere between $450k & $500k.
My 401k YTD performance is 16.5%, and 1 year is 10.7%. on a balance (today) of $150k-ish and I'm currently putting 25% of my paycheck into 401k (with a 4% match from my employer).
I'm looking at retiring in about 5 years, sooner if possible.
My question is, given these variables, is it wise (or possible) to pay off my mortgage with my 401k, then bump my 401k up significantly so I hit the maximum contribution of (currently for >50 year olds), $25k / year. I'd also max out Roth IRA contributions for my wife & me as well as our HSA funds (which can also be invested if you don't use them) which are similarly tax exempt.
In my head this makes some sort of sense, but I'm not a financial person.
Is this (A) possible, (B) advisable, and (C) what pitfalls might there be (taxes, penalties, market instability, etc.)? I don't know how to do this calculation so I'm hoping I've provided enough information to get the help.
mortgage 401k
edited 5 hours ago
JoeTaxpayer♦
150k25241482
asked 6 hours ago
delliottgdelliottg
40018
Does the employer even permit this? Many do not allow a withdrawal while still employed. Are you planning to stay in the house or sell it once you retire?
– JoeTaxpayer♦
5 hours ago
I feel like you don't have near enough in your retirement accounts now unless you also expect a pension. Start throwing extra money at the mortgage (after maxing out the retirement account contributions), and re-evaluate in a few years.
– mkennedy
2 hours ago
1
Why not use your other investments that aren't tax advantaged to pay for the mortgage? Also you can take up to 50k loan from the 401k and pay yourself the interest instead. Granted this means less market exposure
– Chris
1 hour ago
1
Would I liquidate money earning ~10.7% and pay income tax on it to extinguish a 2.75% debt? Never.
– chili555
20 mins ago
add a comment |
I've been considering paying off my mortgage with my 401k balance. Some particulars, I'm in WA state in the US, and I'll turn 60 in about a week.
I have enough in my 401k with my current employer to pay off the balance of my mortgage. Maybe not quite pay it all the way off, but well within a few thousand either way.
FWIW, I have other investments as well that total roughly $300k that are completely separate from my 401k funds.
My mortgage is currently at 2.75% on roughly $138k-ish balance (I don't have a pay-off amount from my mortgage company, so I'm just looking at the current balance). It's a 15 year fixed loan that matures in 2028. The house is currently worth somewhere between $450k & $500k.
My 401k YTD performance is 16.5%, and 1 year is 10.7%. on a balance (today) of $150k-ish and I'm currently putting 25% of my paycheck into 401k (with a 4% match from my employer).
I'm looking at retiring in about 5 years, sooner if possible.
My question is, given these variables, is it wise (or possible) to pay off my mortgage with my 401k, then bump my 401k up significantly so I hit the maximum contribution of (currently for >50 year olds), $25k / year. I'd also max out Roth IRA contributions for my wife & me as well as our HSA funds (which can also be invested if you don't use them) which are similarly tax exempt.
In my head this makes some sort of sense, but I'm not a financial person.
Is this (A) possible, (B) advisable, and (C) what pitfalls might there be (taxes, penalties, market instability, etc.)? I don't know how to do this calculation so I'm hoping I've provided enough information to get the help.
mortgage 401k
edited 5 hours ago
JoeTaxpayer♦
150k25241482
asked 6 hours ago
delliottgdelliottg
40018
I've been considering paying off my mortgage with my 401k balance. Some particulars, I'm in WA state in the US, and I'll turn 60 in about a week.
I have enough in my 401k with my current employer to pay off the balance of my mortgage. Maybe not quite pay it all the way off, but well within a few thousand either way.
FWIW, I have other investments as well that total roughly $300k that are completely separate from my 401k funds.
My mortgage is currently at 2.75% on roughly $138k-ish balance (I don't have a pay-off amount from my mortgage company, so I'm just looking at the current balance). It's a 15 year fixed loan that matures in 2028. The house is currently worth somewhere between $450k & $500k.
My 401k YTD performance is 16.5%, and 1 year is 10.7%. on a balance (today) of $150k-ish and I'm currently putting 25% of my paycheck into 401k (with a 4% match from my employer).
I'm looking at retiring in about 5 years, sooner if possible.
My question is, given these variables, is it wise (or possible) to pay off my mortgage with my 401k, then bump my 401k up significantly so I hit the maximum contribution of (currently for >50 year olds), $25k / year. I'd also max out Roth IRA contributions for my wife & me as well as our HSA funds (which can also be invested if you don't use them) which are similarly tax exempt.
In my head this makes some sort of sense, but I'm not a financial person.
Is this (A) possible, (B) advisable, and (C) what pitfalls might there be (taxes, penalties, market instability, etc.)? I don't know how to do this calculation so I'm hoping I've provided enough information to get the help.
mortgage 401k
mortgage 401k
edited 5 hours ago
JoeTaxpayer♦
150k25241482
asked 6 hours ago
delliottgdelliottg
40018
edited 5 hours ago
JoeTaxpayer♦
150k25241482
asked 6 hours ago
delliottgdelliottg
40018
edited 5 hours ago
JoeTaxpayer♦
150k25241482
edited 5 hours ago
JoeTaxpayer♦
150k25241482
edited 5 hours ago
JoeTaxpayer♦
150k25241482
150k25241482
asked 6 hours ago
delliottgdelliottg
40018
asked 6 hours ago
delliottgdelliottg
40018
asked 6 hours ago
delliottgdelliottg
40018
40018
Does the employer even permit this? Many do not allow a withdrawal while still employed. Are you planning to stay in the house or sell it once you retire?
– JoeTaxpayer♦
5 hours ago
I feel like you don't have near enough in your retirement accounts now unless you also expect a pension. Start throwing extra money at the mortgage (after maxing out the retirement account contributions), and re-evaluate in a few years.
– mkennedy
2 hours ago
1
Why not use your other investments that aren't tax advantaged to pay for the mortgage? Also you can take up to 50k loan from the 401k and pay yourself the interest instead. Granted this means less market exposure
– Chris
1 hour ago
1
Would I liquidate money earning ~10.7% and pay income tax on it to extinguish a 2.75% debt? Never.
– chili555
20 mins ago
add a comment |
Does the employer even permit this? Many do not allow a withdrawal while still employed. Are you planning to stay in the house or sell it once you retire?
– JoeTaxpayer♦
5 hours ago
I feel like you don't have near enough in your retirement accounts now unless you also expect a pension. Start throwing extra money at the mortgage (after maxing out the retirement account contributions), and re-evaluate in a few years.
– mkennedy
2 hours ago
1
Why not use your other investments that aren't tax advantaged to pay for the mortgage? Also you can take up to 50k loan from the 401k and pay yourself the interest instead. Granted this means less market exposure
– Chris
1 hour ago
1
Would I liquidate money earning ~10.7% and pay income tax on it to extinguish a 2.75% debt? Never.
– chili555
20 mins ago
Does the employer even permit this? Many do not allow a withdrawal while still employed. Are you planning to stay in the house or sell it once you retire?
– JoeTaxpayer♦
5 hours ago
Does the employer even permit this? Many do not allow a withdrawal while still employed. Are you planning to stay in the house or sell it once you retire?
– JoeTaxpayer♦
5 hours ago
I feel like you don't have near enough in your retirement accounts now unless you also expect a pension. Start throwing extra money at the mortgage (after maxing out the retirement account contributions), and re-evaluate in a few years.
– mkennedy
2 hours ago
I feel like you don't have near enough in your retirement accounts now unless you also expect a pension. Start throwing extra money at the mortgage (after maxing out the retirement account contributions), and re-evaluate in a few years.
– mkennedy
2 hours ago
1
1
Why not use your other investments that aren't tax advantaged to pay for the mortgage? Also you can take up to 50k loan from the 401k and pay yourself the interest instead. Granted this means less market exposure
– Chris
1 hour ago
Why not use your other investments that aren't tax advantaged to pay for the mortgage? Also you can take up to 50k loan from the 401k and pay yourself the interest instead. Granted this means less market exposure
– Chris
1 hour ago
1
1
Would I liquidate money earning ~10.7% and pay income tax on it to extinguish a 2.75% debt? Never.
– chili555
20 mins ago
Would I liquidate money earning ~10.7% and pay income tax on it to extinguish a 2.75% debt? Never.
– chili555
20 mins ago
add a comment |
2 Answers
2
active
oldest
votes
I will say, it is
(A) Possible
(B) No, as you are getting very cheap money at 2.75% and your 401K is giving 10+ and even if it changes to average of 7%, you are still making a lot. And if you withdraw fund s from 401k, you will pay taxes.
(C). As outlined in B, you will pay taxes on 401k withdrawal as those withdrawal will be in bulk and will raise your tax bracket.
answered 6 hours ago
RajRaj
2907
2
I would be cautious about a phrase like "raise your tax bracket". Many people don't understand marginal taxation, and misinterpret this and make the classic mistake of thinking that entering into a higher tax bracket will raise the taxes on all of your income
– Alexander
45 mins ago
add a comment |
Besides the tax implications there is something else to consider.
By taking the money from your 401K, and then paying down the mortgage you are moving money from retirement accounts and locking it into home equity.
Don't get me wrong I believe that it can be an important part of retirement planning to be mortgage free by retirement. Others disagree but that isn't the point. You will be moving money that could be invested in stocks, bonds, small companies, large companies, and even international funds all while staying inside the retirement account. Now you will have 130K more money invested in your house, and 130K less in your flexible retirement accounts.
You will have limited options to access the funds in the house. You could sell, you could get a new loan, but those have costs and may even have tax impacts.
This also ignores the complications of taking money from a 401(k) while being employed. But so many people have multiple 401(k)s and IRA accounts it is very possible that others considering this option can use funds in old 401(k)s
answered 5 hours ago
mhoran_psprepmhoran_psprep
71.2k8100179
Yes, but the dollars need adjustment. even in the 12% bracket, it will take $148K to net the $130K to pay off the mortgage. And you all but said, "Liquidity".
– JoeTaxpayer♦
5 hours ago
So, this raises a good question, I have the other $300K in an IRA that was rolled over from another 401k from a long time ago. Would it be more advantageous to take money from that account rather than my active 401k?
– delliottg
4 hours ago
The flipside of it being tough for you to access the funds you put in your house is that if your pet rhino got loose in a Mercedes dealership the equity in your home would be much easier for a lawyer to recover damages from vs your 401k which is protected even in bankruptcy..
– nvuono
3 hours ago
add a comment |
protected by JoeTaxpayer♦ 3 hours ago
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
I will say, it is
(A) Possible
(B) No, as you are getting very cheap money at 2.75% and your 401K is giving 10+ and even if it changes to average of 7%, you are still making a lot. And if you withdraw fund s from 401k, you will pay taxes.
(C). As outlined in B, you will pay taxes on 401k withdrawal as those withdrawal will be in bulk and will raise your tax bracket.
answered 6 hours ago
RajRaj
2907
2
I would be cautious about a phrase like "raise your tax bracket". Many people don't understand marginal taxation, and misinterpret this and make the classic mistake of thinking that entering into a higher tax bracket will raise the taxes on all of your income
– Alexander
45 mins ago
add a comment |
I will say, it is
(A) Possible
(B) No, as you are getting very cheap money at 2.75% and your 401K is giving 10+ and even if it changes to average of 7%, you are still making a lot. And if you withdraw fund s from 401k, you will pay taxes.
(C). As outlined in B, you will pay taxes on 401k withdrawal as those withdrawal will be in bulk and will raise your tax bracket.
answered 6 hours ago
RajRaj
2907
2
I would be cautious about a phrase like "raise your tax bracket". Many people don't understand marginal taxation, and misinterpret this and make the classic mistake of thinking that entering into a higher tax bracket will raise the taxes on all of your income
– Alexander
45 mins ago
add a comment |
I will say, it is
(A) Possible
(B) No, as you are getting very cheap money at 2.75% and your 401K is giving 10+ and even if it changes to average of 7%, you are still making a lot. And if you withdraw fund s from 401k, you will pay taxes.
(C). As outlined in B, you will pay taxes on 401k withdrawal as those withdrawal will be in bulk and will raise your tax bracket.
answered 6 hours ago
RajRaj
2907
I will say, it is
(A) Possible
(B) No, as you are getting very cheap money at 2.75% and your 401K is giving 10+ and even if it changes to average of 7%, you are still making a lot. And if you withdraw fund s from 401k, you will pay taxes.
(C). As outlined in B, you will pay taxes on 401k withdrawal as those withdrawal will be in bulk and will raise your tax bracket.
answered 6 hours ago
RajRaj
2907
answered 6 hours ago
RajRaj
2907
answered 6 hours ago
RajRaj
2907
answered 6 hours ago
RajRaj
2907
2907
2
I would be cautious about a phrase like "raise your tax bracket". Many people don't understand marginal taxation, and misinterpret this and make the classic mistake of thinking that entering into a higher tax bracket will raise the taxes on all of your income
– Alexander
45 mins ago
add a comment |
2
I would be cautious about a phrase like "raise your tax bracket". Many people don't understand marginal taxation, and misinterpret this and make the classic mistake of thinking that entering into a higher tax bracket will raise the taxes on all of your income
– Alexander
45 mins ago
2
2
I would be cautious about a phrase like "raise your tax bracket". Many people don't understand marginal taxation, and misinterpret this and make the classic mistake of thinking that entering into a higher tax bracket will raise the taxes on all of your income
– Alexander
45 mins ago
I would be cautious about a phrase like "raise your tax bracket". Many people don't understand marginal taxation, and misinterpret this and make the classic mistake of thinking that entering into a higher tax bracket will raise the taxes on all of your income
– Alexander
45 mins ago
add a comment |
Besides the tax implications there is something else to consider.
By taking the money from your 401K, and then paying down the mortgage you are moving money from retirement accounts and locking it into home equity.
Don't get me wrong I believe that it can be an important part of retirement planning to be mortgage free by retirement. Others disagree but that isn't the point. You will be moving money that could be invested in stocks, bonds, small companies, large companies, and even international funds all while staying inside the retirement account. Now you will have 130K more money invested in your house, and 130K less in your flexible retirement accounts.
You will have limited options to access the funds in the house. You could sell, you could get a new loan, but those have costs and may even have tax impacts.
This also ignores the complications of taking money from a 401(k) while being employed. But so many people have multiple 401(k)s and IRA accounts it is very possible that others considering this option can use funds in old 401(k)s
answered 5 hours ago
mhoran_psprepmhoran_psprep
71.2k8100179
Yes, but the dollars need adjustment. even in the 12% bracket, it will take $148K to net the $130K to pay off the mortgage. And you all but said, "Liquidity".
– JoeTaxpayer♦
5 hours ago
So, this raises a good question, I have the other $300K in an IRA that was rolled over from another 401k from a long time ago. Would it be more advantageous to take money from that account rather than my active 401k?
– delliottg
4 hours ago
The flipside of it being tough for you to access the funds you put in your house is that if your pet rhino got loose in a Mercedes dealership the equity in your home would be much easier for a lawyer to recover damages from vs your 401k which is protected even in bankruptcy..
– nvuono
3 hours ago
add a comment |
Besides the tax implications there is something else to consider.
By taking the money from your 401K, and then paying down the mortgage you are moving money from retirement accounts and locking it into home equity.
Don't get me wrong I believe that it can be an important part of retirement planning to be mortgage free by retirement. Others disagree but that isn't the point. You will be moving money that could be invested in stocks, bonds, small companies, large companies, and even international funds all while staying inside the retirement account. Now you will have 130K more money invested in your house, and 130K less in your flexible retirement accounts.
You will have limited options to access the funds in the house. You could sell, you could get a new loan, but those have costs and may even have tax impacts.
This also ignores the complications of taking money from a 401(k) while being employed. But so many people have multiple 401(k)s and IRA accounts it is very possible that others considering this option can use funds in old 401(k)s
answered 5 hours ago
mhoran_psprepmhoran_psprep
71.2k8100179
Yes, but the dollars need adjustment. even in the 12% bracket, it will take $148K to net the $130K to pay off the mortgage. And you all but said, "Liquidity".
– JoeTaxpayer♦
5 hours ago
So, this raises a good question, I have the other $300K in an IRA that was rolled over from another 401k from a long time ago. Would it be more advantageous to take money from that account rather than my active 401k?
– delliottg
4 hours ago
The flipside of it being tough for you to access the funds you put in your house is that if your pet rhino got loose in a Mercedes dealership the equity in your home would be much easier for a lawyer to recover damages from vs your 401k which is protected even in bankruptcy..
– nvuono
3 hours ago
add a comment |
Besides the tax implications there is something else to consider.
By taking the money from your 401K, and then paying down the mortgage you are moving money from retirement accounts and locking it into home equity.
Don't get me wrong I believe that it can be an important part of retirement planning to be mortgage free by retirement. Others disagree but that isn't the point. You will be moving money that could be invested in stocks, bonds, small companies, large companies, and even international funds all while staying inside the retirement account. Now you will have 130K more money invested in your house, and 130K less in your flexible retirement accounts.
You will have limited options to access the funds in the house. You could sell, you could get a new loan, but those have costs and may even have tax impacts.
This also ignores the complications of taking money from a 401(k) while being employed. But so many people have multiple 401(k)s and IRA accounts it is very possible that others considering this option can use funds in old 401(k)s
answered 5 hours ago
mhoran_psprepmhoran_psprep
71.2k8100179
Besides the tax implications there is something else to consider.
By taking the money from your 401K, and then paying down the mortgage you are moving money from retirement accounts and locking it into home equity.
Don't get me wrong I believe that it can be an important part of retirement planning to be mortgage free by retirement. Others disagree but that isn't the point. You will be moving money that could be invested in stocks, bonds, small companies, large companies, and even international funds all while staying inside the retirement account. Now you will have 130K more money invested in your house, and 130K less in your flexible retirement accounts.
You will have limited options to access the funds in the house. You could sell, you could get a new loan, but those have costs and may even have tax impacts.
This also ignores the complications of taking money from a 401(k) while being employed. But so many people have multiple 401(k)s and IRA accounts it is very possible that others considering this option can use funds in old 401(k)s
answered 5 hours ago
mhoran_psprepmhoran_psprep
71.2k8100179
answered 5 hours ago
mhoran_psprepmhoran_psprep
71.2k8100179
answered 5 hours ago
mhoran_psprepmhoran_psprep
71.2k8100179
answered 5 hours ago
mhoran_psprepmhoran_psprep
71.2k8100179
71.2k8100179
Yes, but the dollars need adjustment. even in the 12% bracket, it will take $148K to net the $130K to pay off the mortgage. And you all but said, "Liquidity".
– JoeTaxpayer♦
5 hours ago
So, this raises a good question, I have the other $300K in an IRA that was rolled over from another 401k from a long time ago. Would it be more advantageous to take money from that account rather than my active 401k?
– delliottg
4 hours ago
The flipside of it being tough for you to access the funds you put in your house is that if your pet rhino got loose in a Mercedes dealership the equity in your home would be much easier for a lawyer to recover damages from vs your 401k which is protected even in bankruptcy..
– nvuono
3 hours ago
add a comment |
Yes, but the dollars need adjustment. even in the 12% bracket, it will take $148K to net the $130K to pay off the mortgage. And you all but said, "Liquidity".
– JoeTaxpayer♦
5 hours ago
So, this raises a good question, I have the other $300K in an IRA that was rolled over from another 401k from a long time ago. Would it be more advantageous to take money from that account rather than my active 401k?
– delliottg
4 hours ago
The flipside of it being tough for you to access the funds you put in your house is that if your pet rhino got loose in a Mercedes dealership the equity in your home would be much easier for a lawyer to recover damages from vs your 401k which is protected even in bankruptcy..
– nvuono
3 hours ago
Yes, but the dollars need adjustment. even in the 12% bracket, it will take $148K to net the $130K to pay off the mortgage. And you all but said, "Liquidity".
– JoeTaxpayer♦
5 hours ago
Yes, but the dollars need adjustment. even in the 12% bracket, it will take $148K to net the $130K to pay off the mortgage. And you all but said, "Liquidity".
– JoeTaxpayer♦
5 hours ago
So, this raises a good question, I have the other $300K in an IRA that was rolled over from another 401k from a long time ago. Would it be more advantageous to take money from that account rather than my active 401k?
– delliottg
4 hours ago
So, this raises a good question, I have the other $300K in an IRA that was rolled over from another 401k from a long time ago. Would it be more advantageous to take money from that account rather than my active 401k?
– delliottg
4 hours ago
The flipside of it being tough for you to access the funds you put in your house is that if your pet rhino got loose in a Mercedes dealership the equity in your home would be much easier for a lawyer to recover damages from vs your 401k which is protected even in bankruptcy..
– nvuono
3 hours ago
The flipside of it being tough for you to access the funds you put in your house is that if your pet rhino got loose in a Mercedes dealership the equity in your home would be much easier for a lawyer to recover damages from vs your 401k which is protected even in bankruptcy..
– nvuono
3 hours ago
add a comment |
protected by JoeTaxpayer♦ 3 hours ago
Thank you for your interest in this question.
Because it has attracted low-quality or spam answers that had to be removed, posting an answer now requires 10 reputation on this site (the association bonus does not count).
Would you like to answer one of these unanswered questions instead?
Does the employer even permit this? Many do not allow a withdrawal while still employed. Are you planning to stay in the house or sell it once you retire?
– JoeTaxpayer♦
5 hours ago
I feel like you don't have near enough in your retirement accounts now unless you also expect a pension. Start throwing extra money at the mortgage (after maxing out the retirement account contributions), and re-evaluate in a few years.
– mkennedy
2 hours ago
1
Why not use your other investments that aren't tax advantaged to pay for the mortgage? Also you can take up to 50k loan from the 401k and pay yourself the interest instead. Granted this means less market exposure
– Chris
1 hour ago
1
Would I liquidate money earning ~10.7% and pay income tax on it to extinguish a 2.75% debt? Never.
– chili555
20 mins ago