Primary home purchase

[PwrStkr]

I hope this is the right section, but wanted to know if a anyone can answer this. Can you use 401K for purchase of boat as a primary residence without withdraw penalties?

Thanks in advance

[denverd0n]

First off, and most important, internet tax advice is worth exactly what you pay for it... NOTHING! You really should be talking to a tax professional about this, if you are not able to do the research and understand the rules on your own.

That said, the short answer is, yes. If the home that you are purchasing is your primary residence then it does not matter if it is a house, an RV, or a boat (so long as it meets the "residence" requirements). The withdrawal would be a taxable event. That is, you must report the amount you withdraw as income, and pay income taxes on it. You do not, however, have to pay the additional 10% penalty for early withdrawal.

Finally I will add that I would never even consider this option unless I had exhausted all other possibilities.

[PwrStkr]

Thank you, I was interested in finding out if someone had experience doing this. Should have stated more clear. I asked because I have a 401 sitting that I cannot contribute too anymore and if I find a new job that requires relocation wanted to further investigate. We want to make the move and we're starting a four year plan, then the company I work for sold. I am currently job hunting and it seems the most opportunities are in southern Florida. This may make the move sooner, should fair winds blow our way.