I like that you didn't give any opinions here. You laid out facts instead. I knew all of the facts I needed already, but I am somewhat sick of everyone saying to never touch a retirement account. My money is my responsibility, and I need the facts so I can make an informed decision, not opinions based on other people making mistakes.

@DrSchor

10 ай бұрын

what? learning from mistakes is using facts.

Dropped some gems in this one, thanks!

Thanks so much for this amazing video!

Amazing explanation! Thank you sir!

Very detailed video! I finally get it. Thank you

This video is perfect!

thanks this video is very helpful to me got clear with lot of questions

Fantastic, thank you!

Very helpful information, thank you

Hi Mike, just wanted to add one piece to Roth IRA distributions. Yes you are able to take your own contributions tax and penalty free, but only AFTER the Roth IRA has been open for 5 years

@greenbushfinancialgroup

Ай бұрын

The “after 5 years” only pertains to the earning piece and you have to be over age 59.5 for that. You are always able to withdrawal your original contributions tax and penalty free regardless of the 5 year clock because the contributors are made with after tax dollars. (This comment is for education. Not advice) #gfg

A couple things: one significant risk factor to consider about longer term 401k loans (especially 10+ year terms!) is that they must be repaid in full at termination or separation from service, which by it's very nature is often unpredictable. If you would be unable to pay it back the outstanding loan balance in full OOP, you would owe penalty (if under 59.5) and income taxes on top of that years income and potentially being fired! Also, there is not double taxation of (trad) 401k loans, even though it is paid back with post tax dollars. The initial contributions were tax deductible, then loan distribution is tax free, thus must be repaid with post tax dollars, and yes will be taxed upon distribution in retirement. It's as if the loan never happened.

What if you wanted to invest the surplus after paying the closing cost? Is that allowed?

Why don’t people ever cover the primary use of a 401k - to invest in assets outside of stocks/bonds? What if someone want to purchase a $500k rental property and they have $400k in their 401k? Can they put the LLC of the property in their 401k? Does the 401k have to have the $500k before purchasing the property or can the account hold partial ownership?

What about for a Roth 401k?

Does your employer demand a loan officer or mortgage company letter to approve the hardship withdrawal for a first time homebuyer?

@greenbushfinancialgroup

3 жыл бұрын

Not usually (Comment is for education. Not advice)

If I withdraw 20k from traditional IRA to buy the first house, but can only return 5k to the IRA within 60 days. Do I still get penalty on the 20k or just 5k since no penalty on 10k for first time home buyer ?

@greenbushfinancialgroup

3 жыл бұрын

You would pay taxes on 15k and you would incur a 10% penalty on $5k which is the amount over and above the $10k first time home buyer exception that was not returned to the IRA within 60 days. (Comment is for education. Not advice)

What happens if I borrow from a "fully vested 401k " and want to leave current employer? Will the loan be due immediately or can be paid over time?

@greenbushfinancialgroup

2 жыл бұрын

The answer varies from provider to provider (Comment is for education. Not advice)

I have a question. I’m going to roll over a pension into a Ira account. Will I be able to pull the 10 k out to buy my new home without penalty immediately? Or is there a waiting period? Also I read somewhere I can pull another 10 k for my husband he’s also a first time home buyer. Will he need to be on the home loan and have a separate IRA Account?

@greenbushfinancialgroup

3 жыл бұрын

There is no waiting period once the money is in your IRA to qualify for the $10K penalty free distribution. If you and your husband both have IRA's, you would each qualify for the $10K IRA distribution penalty free as long as neither of you have owned a home for the past two years. When you file your taxes, you may have to file a 5329 form to apply of the 10% exception. I don't believe that you have to be on the deed or the loan to qualify as long as your spouse is on the deed of the property but I would recommend talking to a tax professional about that. (Comment is for education. Not advice)

@DrSchor

10 ай бұрын

i am worried about you, it is idiotic to ask a question like that here. you are one of the suckers that are born every minute if you take you tube advice. and the guys answer was the only one he could give. he has no idea and tells you to ask a professional, which you should have already known,.

Thanks for the video. What are the primary residence rules for IRA withdrawals? How long do you have to live in the house?

@greenbushfinancialgroup

3 жыл бұрын

For an IRA, there is a first time home buyer exception, where you can withdrawal $10K from your IRA and avoid the 10% early withdrawal penalty (Comment is for education. Not advice)

@brianjones9334

3 жыл бұрын

If I want to rent the house eventually, is there a minimum amount of time that I would have to live in the house as a primary residence?

I have a unique situation where I'll be rolling a 401k from previous employer directly to a traditional IRA. 1) does that count against the 1 time 60 day rollover? 2) are taxes withheld from the amount withdrawn using the 60 day rule? 3) would it be better to do a portion of the 401k rollover direct to IRA and portion we need for bridge dispersed to us?

@greenbushfinancialgroup

3 жыл бұрын

Rolling a 401k directly to an IRA via a direct transfer does not count towards you single 60 day rollover every 12 months (Comment is for education. Not advice)

@saucemanpmc

3 жыл бұрын

@@greenbushfinancialgroup so we did the direct rollover to IRA, then we withdrew the funds we needed for the bridge...but they withheld 5% for MA state tax. Will we get that money back when we replenish the IRA?

Thanks for the video! Quick question, I have 403b and trying to take out the entire money out to help buying a house. I’m waiting for the employer verification, do employers determine how much I can take out and do employers ever decline it? The benefit company (e.g. TIAA) has already approved it in their end.

@greenbushfinancialgroup

3 жыл бұрын

It depends which feature of the plan you are trying to take the distribution under. Are you over the age of 59 1/2 taking an "in-service distribution" or are you under the age of 59 1/2 applying for a hardship distribution? (Comment is for education. Not advice)

If you take a loan from anywhere you would be paying it back with after tax money.

@greenbushfinancialgroup

4 ай бұрын

Correct, but the issue is, it’s going back into a pretax source, which you have to pay tax again on in the future (comment is for education not advice)

If you take out a loan from your 403b, to buy a house as your primary residence, do you have to pay taxes?

@greenbushfinancialgroup

2 жыл бұрын

No, loans from 401(K)/403(b) do not trigger taxable events

if you leave yor emlployer you then have to somehow pay it BACK but NOT via Payroll withholdings** meaning you have to pay it UP IN FULL....

What if it’s for an investment property

@greenbushfinancialgroup

2 жыл бұрын

You can take a 401(k) loan to buy an investment property but you are limited to the 5 year maximum duration for the loan. Only 401K loan for the purchase of a primary residence can extend beyond the 5 year duration (Comment is for education. Not advice)

I collect Social Security, but I want to take out $35000.00 from an IRA to buy a house. How much would I have to pay in taxes.

@greenbushfinancialgroup

2 жыл бұрын

It varies person to person depending on their total income, deductions, credits, and the state that they live in. (Comment is for education. Not advice)

basically we live in a messy spaghetty-tangled society where rules are made to be not so simple..lol