Can we use loan from 401k to buy a home

[user789]

7 hours ago, AndhraneedSCS said:

Yes, you can. You can take up to 50% of the amount as a loan. you can repay it within 60 months (no documentation needed) or 120 months.

 

I am not sure if it is a good idea though 

why do you think it might not be a good idea?

[user789]

advantage ee kada -as it's  pre-taxed money 

[snoww]

4 minutes ago, user789 said:

why do you think it might not be a good idea?

If you change or lose job then you have to repay the money within 90 days . Otherwise it will be considered as withdrawl and you will be taxed and also 10% penalty. 

[hyperbole]

4 minutes ago, snoww said:

If you change or lose job then you have to repay the money within 90 days . Otherwise it will be considered as withdrawl and you will be taxed and also 10% penalty. 

That is not true for all companies , i took a 401k loan while buying my house and changed my company litle over 5 years now, i took a 10 year loan

[snoww]

1 minute ago, hyperbole said:

That is not true for all companies , i took a 401k loan while buying my house and changed my company litle over 5 years now, i took a 10 year loan

Yes. Depends on the employer.  

[snoww]

Just now, snoww said:

Yes. Depends on the employer.  

Also depending on when you withdrawn the money you will be either missing market gains during that time , or would have escaped market drop. So it depends.