I know it's not the best plan. I don't have many choices. Due to a buyer's contract falling through I am not able to carry equity over for a 20% down payment on our new home. In order to complete the close on our new home I am left with a choice of pulling the money from my 401K for a down payment. Fortunately, the market is hot in my area. It should be sold within weeks of our new home.
After our house is sold I will be able to replenish the funds with equity from our old home.
- What can I do to minimize tax implications?
- If I invest the equity in 60 days of 401K withdrawal can I avoid or minimize tax and early withdrawal penalties?
- Should I invest in an IRA or Roth IRA ?
I was told by Wells Fargo, that I cannot return the money to my company 401K.