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Brown Cafe UPS Forum
UPS Retirement Topics
401K Withdrawl
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<blockquote data-quote="UpstateNYUPSer(Ret)" data-source="post: 4298319" data-attributes="member: 12570"><p>Your best bet to avoid the 20% withholding tax (the 10% penalty would not apply due to your age) would be to take out a loan from your 401k. If you do leave the company while the loan is still active you would have until April 15th of the year after you leave to repay the loan in full. You could do that with the proceeds from the sale of your current home or you could take a partial distribution when you rollover your 401k upon retirement. You would have to pay taxes on the partial distribution.</p><p></p><p><a href="https://www.investopedia.com/ask/answers/111815/can-401k-be-used-house-down-payment.asp" target="_blank">Can a 401(k) Be Used for a House Down Payment?</a></p></blockquote><p></p>
[QUOTE="UpstateNYUPSer(Ret), post: 4298319, member: 12570"] Your best bet to avoid the 20% withholding tax (the 10% penalty would not apply due to your age) would be to take out a loan from your 401k. If you do leave the company while the loan is still active you would have until April 15th of the year after you leave to repay the loan in full. You could do that with the proceeds from the sale of your current home or you could take a partial distribution when you rollover your 401k upon retirement. You would have to pay taxes on the partial distribution. [URL='https://www.investopedia.com/ask/answers/111815/can-401k-be-used-house-down-payment.asp']Can a 401(k) Be Used for a House Down Payment?[/URL] [/QUOTE]
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