My question is: US-specific
QUESTION: I want to withdraw my 401K money to buy a condo or co-op in New
York City (resident). Employer does not have loan program. I understand that
I can take all of it out minus the withholding ($75k between this employer
and previous - never transfered).
Are there any restrictions on when I can sell if I decide to move to another
state? Do I have to hold onto the property for a certain period of time?
Any penalties?
thanks
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david ingram replies:
I know of no time limits for the ownership of the home.
If you have not owned a home for 2 years, you can withdraw $10,000 of it
without paying the 10% early withdrawal penalty,.
If you are less than 59 1/2 years old, there is a 10% penalty on the
withdrawal. In either case, you need to add the withdrawal to your income
and pay tax at your highest marginal tax rate.
And one last word of warning. In spite of the massive profits people have
been making in flipping real estate, many areas are slowing down or stopped.
If you are thinking of moving to another state, why not buy the unit you
will want now and rent it out until you can move there. I would be leery of
buying in New York and flipping right now. I think the market has topped
there. But then, What do I know?
Answers to this and other similar questions can be obtained free on Air
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