AboutWillard R. Brumbaugh, LUTCF Expertise I have answered many questions regarding 401ks, IRAs and annuities as well as life insurance.
I have been counselling against most Qualified Plans since 1994.
Experience Ranked in the top 5 in retirement catagories at Askme.com most of its last 2 1/2 years. Organizations I belong to:
National Association of Insurance and Financial Advisors-California
Inland Empire Estate Planning Council
Education/Credentials Life Underwriters Training Council Fellow
Question If you don't own a house but are retired, can you withdraw the price of the house from your 401K without a penalty and extra tax?
Answer Dear Charles,
If you are retired, you should not even have a 401(k). It is my opinion that those funds should be in a "pour-over" IRA. If you have not owned a home in the previous 2 years, you can withdraw up to $10,000 from the IRA to apply to a home purchase without being hit with the 10% Premature Distribution Penalty. If you are over 59 1/2, the PDP does not apply, but the income tax is still an issue.
You can never escape the income tax, since the 401(k) deposits had not been taxed at the time of contribution.
Willard R. Brumbaugh, LUTCF
www.willardbrumbaugh.com
