BORROWING AGAINST A 401 (K)
By Marilyn Lacy ~ Broker ~ RE/MAX Mountain Vista Properties
5.5.05

Many people now have 401 (K) retirement programs. In accordance with current federal regulations, you can borrow up to 50% of the account balance - up to $50,000 - to garner money for a down payment on property. The question is: do you really want to? The borrowed money must be repaid; if not, you could suffer significant tax consequences. You need to find out how much you can borrow, the loan term, interest rate and default consequences as well as lender qualification policies before you dip into your 401 (K). Tax laws change frequently, so check with your financial advisor before pursuing this or any real estate strategy. Finding an agent whose expert advice you can depend on is extremely important in any real estate transaction. For prompt and professional help, talk to Marilyn Lacy at RE/MAX, The office is located at 108 East Main, phone 719-395-9063.

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