Date: Sun, 24 Sep 2006 05:43:34 -0500
From: "DFIGTREE" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Liquadate 401 K to pay off Mortgage
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BeaForoni@msn.com wrote:
> I have reached a point where my 401K is now greater than my mortgage.
> My question is would there be any advantage to borrowing from the
> retirement plan and paying off the mortgage completely? My thought is
> that I would be paying myself the interest. At thispoint there is
> little advantage to itemizing and deducting mortgage interest.
>
> Thank you in advance.

Do not borrow against your 401K.  Risks: loss of job; loss of spouse's
job; disability; death; spouse's death; missed payment, etc.  You are
getting a tax break on your mortgage PAYMENTS and you are getting a tax
ADVANTAGE on your 401k GROWTH and CONTRIBUTIONS.
The comment above about being taxed twice should be taken to heart.
Don't get too clever with your 401k.  It's your personal Social
Security. Invest with your head, not over it.

Good luck,
Dave