Cash Out 401k To Buy Car Link

If you absolutely must use your retirement funds, a is usually better than a withdrawal:

The amount you withdraw is added to your taxable income for the year, which could even push you into a higher tax bracket. cash out 401k to buy car

(Usually, it’s not).

As long as you pay it back on time, you don't owe the IRS. If you absolutely must use your retirement funds,

When you withdraw money from a traditional 401(k) before age 59½, it isn't just "your money." cash out 401k to buy car

Over 25 years at a 7% average return, that could have grown to over $160,000 . By buying a car that depreciates (loses value), you are trading a massive future asset for a shrinking one. 3. A Better Alternative: The 401(k) Loan