Question about 401k 403b accounts

Discussion in 'Off-Topic' started by gB dAvId x, Dec 23, 2012.

  1. gB dAvId x

    gB dAvId x thats what she said

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    I work for a nonprofit organization so I have a 403b account with a percentage coming out from my check bi weekly

    Is it possbile to use this account as a savings account to where I can withdraw money to buy a house or with i get penalized like 10 percent for that?
  2. gB dAvId x

    gB dAvId x thats what she said

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    Is there any special account that can be used for tax free for saving for a house?
  3. 86mcss

    86mcss Devouring your Soul

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    My cousin took out his 401k to help with his home purchase and DID get penalized. I do not think it matters if you work for a non-profit group or not.
  4. JZL

    JZL Ministry of Whack

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    DON'T DO IT-- PERIOD.

    Google "biggest mistakes with retirement funds" and you'll get a panoply of lists and on every single one of them there will be an entry telling you not to do this.
  5. Octane91

    Octane91 <smartass comment> Staff Member

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    When It comes to home buying, the one solution I know of is an IRA; provided this is your first home purchase. The IRS allows a lifetime withdrawal of up to 10,000 penalty free to get a house.

    My IRA and 401k are with Fidelity, but I couldn't find information on their website about this particular subject, so here is informtion from Chase https://www.chase.com/investments/ira#!ira_tabs:ira_tab2 The bottom cell in the table talks about special penalty free withdrawals
  6. JZL

    JZL Ministry of Whack

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  7. gB dAvId x

    gB dAvId x thats what she said

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    So should i just use a normal savings account then? there are no tax free savings accounts?
  8. JZL

    JZL Ministry of Whack

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    What time frame are you considering and what's the source of the money?

    Octane and I were both talking about using IRA accounts. That won't work?
  9. gB dAvId x

    gB dAvId x thats what she said

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    hopefully next 2-3 years before the market starts going back up as it already is now
  10. JZL

    JZL Ministry of Whack

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