From: jrf30@aol.com (JRF30)
Newsgroups: misc.invest.real-estate
Date: 01 Jun 2004 21:19:50 GMT
Subject: Re: Cashing out a 401k

>What is the consensus on cashing out a 401k to for real estate
>investment money?

It depends on a few things.  Are you still working there?  If so, you may be
able to take a "loan" from your 401K, and pay yourself the interest.  then, you
invest, make a profit, and when you sell you pay it back.  Your 401K is still
intact.

if you are NOT still working there, then you can roll the money into an IRA and
buy the real estate IN the IRA.  Save on all those taxes AND still own the
property.

So, there are more options than just "taking the money out".

PLus, if the gains are enough, it is STILL worth it.  IF the gains are enough
to compensate for the taxes and penalties.

John