Should you use the money in your 401k or IRA for a down payment?
Many people buying homes in Connecticut chose to use money in their 401k or IRA accounts to make the down payment on their new house. Usually, you can’t withdraw money from your retirement account unless you retire, leave the company or become disabled, but many plans permit withdrawals when the money will be used to purchase a principal residence (occasionally only for first time buyers). Often plans also allow taking a loan against your account, although this option only works for 401k accounts since no loans are allowed on IRA accounts. Learn more about using your 401k as a down payment on your new home.
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