four 0 1K

[user789]

How much min/max $ can we take out from 401 for house-down payment ? Any penalty if it;s before retirement ?

Should the money need to be accumulated for certain period of time in 401k account before we take out ?

[Roll_Tide]

you can use upto $10k for new home purchase without additional tax penalty for next year

 

utpo $20k if family 

 

you will pay ~35% tax when you take out anyways 

 

NO

[LadiesTailor]

you can take up to 50% as a loan... monthly pay check lo cut chesukuntaru... interest around 4% ala vuntundi but total amount goes to your 401K...

[dummyquestion]

1 hour ago, LadiesTailor said:

you can take up to 50% as a loan... monthly pay check lo cut chesukuntaru... interest around 4% ala vuntundi but total amount goes to your 401K...

correct

[Spartan]

1 hour ago, LadiesTailor said:

you can take up to 50% as a loan... monthly pay check lo cut chesukuntaru... interest around 4% ala vuntundi but total amount goes to your 401K...

50% or 50K which ever is lower. is rule..

[phatposts]

26 minutes ago, Spartan said:

50% or 50K which ever is lower. is rule..

That is correct. 

I did not know there is a 4% interest on the loan part. TY!

[user789]

2 hours ago, Roll_Tide said:

you can use upto $10k for new home purchase without additional tax penalty for next year

 

utpo $20k if family 

 

you will pay ~35% tax when you take out anyways 

 

NO

$10 ki chusa online...thanks for confirming...$20k for family is good. but malli 35% taxes on top of it? So, if you pay money from your saving or 401k - it's the same ?

[Spartan]

20 minutes ago, user789 said:

$10 ki chusa online...thanks for confirming...$20k for family is good. but malli 35% taxes on top of it? So, if you pay money from your saving or 401k - it's the same ?

nuvvu teskunna loan will be considered as income to you for that year...anduke tax kattali daniki.

[Spartan]

33 minutes ago, phatposts said:

That is correct. 

I did not know there is a 4% interest on the loan part. TY!

and u pay that interest to yourself...

Catch is if u are leaving the employer who was contributing to 401k when u took the loan. then you should pay the whole amount back...else u will be paying lot of fines.