He only has 60 days that bay the entire loan back after he retires
401K Withdrawl
- Thread starter scratch
- Start date
Brownwifey
Active Member
This has changed. You USED to have to pay any 401k loan back within 60 days after retirement. With the new tax laws, it was changed to April of the following year to pay the loan in full. Example: Took a loan in Feb 2019 and retired in March 2019. The loan would have to be paid in full by April 2020.
olroadbeech
Happy Verified UPSer
that's what we did.
one of the best decisions we ever made
CoffeeStainedUniform
Well-Known Member
Good job, keeps the money in tax free growth long-term.
olroadbeech
Happy Verified UPSer
still haven't touched it since retiring 4 years ago. went up 22% last year.
can let it grow until age 70 and a half.
pension and social security is more than enough for us so far.
btw , there sure are some miserable souls here on the BC. ( not you coffee )
CoffeeStainedUniform
Well-Known Member
Don't sacrifice "living it up" but good on you. Hopefully that money has a long time to last.
olroadbeech
Happy Verified UPSer
living it up is taking an hour drive to the In and Out Burger and maybe Costco. Then watching a movie later on in the day on the DVD player.
pretty much done all the travelling we want to do , house paid off , don't need anything. never had a mid life crisis....
just want to help kids and grandkids out like my folks did when they were alive.
Don't have to withdrawal it until age 72 now, with the new secure act that just passed.
Brownslave688
You want a toe? I can get you a toe.
Honestly my first thought was
1) if you can’t come up with 15k do you really need to retire
2) do you really need to build a house to be in immediately after retirement?
But sitting on loads of cash isn’t usually a great financial decision if your goal is to build wealth. I am constantly reminding my wife of this.
olroadbeech
Happy Verified UPSer
good.
having a bunch of cash can be a good thing sometimes. when the housing market crashed in 07-08 there were a lot of great bargains out there. not talking about the houses ( which there was ) but everything else , cars, motorcycles. collections , furniture , great yard and garage sales and more.
we scarfed up. mainly buying collectibles at rock bottom prices. the last few years since prices have gone back to where they were , we are selling for nice profits.
clean hairy
Well-Known Member
Could be worth giving serious consideration.
Put you house on the market, get a buyer wants to close 6 weeks before new place is finished. What do you do?
House sits on the market months after new house is finished. Best offer you get is 30k under appraisal.
Comes down to if you want to gamble or sell for 25k less to the buyer who will work with you on closing if need be....
He is old enough that if he retired he wouldn't have to worry about w loan
I will probably go to where I bank and take out a signature loan the end of next month and start building our new house. I can take out a 36-48 month loan with small monthly payments and pay it off when I sell my current home in six months. We currently live in a two-story house built on the side of a hill on a one acre lot and my wife is legally blind. Steps are not a good thing with her condition and I'm tired of doing a lot of yard work. We had our house built a year after we got married and have outgrown it. The new house will have plenty of space. Gourmet kitchen, walk-in closets, bigger garage for a golf cart and my DIY projects. The county I live in has gone to Hell the last few years since Democrats are now running things. Taxes and crime rates are going up, its time to move to a gated safe area.
A couple of banker friends said I had the right idea. Its better to leave investments like my 401K alone for tax reasons. A home equity line will cost at least $900 extra in fees. We looked at and decided on exactly what we want to build today. I will pick out a lot and put 20K down to start construction when I go on vacation the last week of February. I'm thinking about retiring from August-October, so we will hopefully move by then. I'm thinking about trying to sell through a traditional real estate agent to maximize equity. If I don't sell a month before the new house is ready I would have the option of selling to somebody like Open Door and take a hit with that.
A couple of banker friends said I had the right idea. Its better to leave investments like my 401K alone for tax reasons. A home equity line will cost at least $900 extra in fees. We looked at and decided on exactly what we want to build today. I will pick out a lot and put 20K down to start construction when I go on vacation the last week of February. I'm thinking about retiring from August-October, so we will hopefully move by then. I'm thinking about trying to sell through a traditional real estate agent to maximize equity. If I don't sell a month before the new house is ready I would have the option of selling to somebody like Open Door and take a hit with that.
brownmonster
Man of Great Wisdom
Blame the democrats. Yawn.
UPSER1987
Well-Known Member
But it does mean safer. It's age-restricted too, I'm all about that.
No teenagers allowed and somebody has to be 55 to move in here. Gated with security guards, low crime stats in area.
