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OFF-TOPIC Should I cash out some of my 401k?

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Read Millionaire Fastlane
Sep 12, 2017
The company that I work for is allowing employees to take out loans on their 401k accounts due to C0VlD-19. The money doesn't have to be paid back.

However, the money will also be taxed heavily. For instance, my plan is to withdraw $15k which will end up being around $13,300 after state and federal taxes. I could take out up to $40k but don't want to pay a lot in taxes.

I plan on adding it to my current savings which will total to around $30k.

My goal is to invest in multifamily real estate down the road... (perhaps take out an FHA loan). I'm also interested in commercial real estate such as warehouses. I see more businesses needing extra storage and warehousing seems like a good option as well.

Do you think taking money out of my 401K for such investments would be a good idea? Also, for those of you in real estate, which would be a better option for someone in my situation?

Thanks in advance!


Bronze Contributor
Speedway Pass
Jan 30, 2019
You better be able to make profit of taking out your 401k versus the cost of taxes and investment return if you did not take anything out of the 401k.

If you're 110% confident you'll make profit, then yes. Otherwise, no.


Read Millionaire Fastlane
Speedway Pass
Feb 2, 2020
Are people usually able to withdraw from their 401k?
Will there be another opportunity to do this?
How badly do you need the cash?
Have you got other sources of finance?

If I needed cash I'd take a 12% hit on my money.
One time deal no repayments. It's hardly credit card interest.
Depends what other sources of finance were available & how badly I needed the cash.

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