Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I am 65 I want to use IRA funds as a down payment for a new…

Customer Question
I am 65 I...

I am 65 I want to use IRA funds as a down payment for a new primary residence. I hope to repay these funds within 60 days of escrow closing. However, it could take longer than 60 days to sell my current residence thus delaying that repayment. Could I withdraw funds from my employer sponsored 401k to repay the IRA, then repay the 401k within 60 day. All to avoid the tax liability?

Accountant's Assistant: The expert will know how to help. Is there anything else important you think the expert should know?

I think this covers it

Submitted: 6 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 8 minutes by:
8/7/2017
Tax Professional: taxmanrog, Certified Public Accountant (CPA) replied 6 months ago
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 927
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
Verified

Welcome to Just Answer! Thank you for giving me the opportunity to assist you! I will do my best to help!

Ask Your Own Tax Question
Tax Professional: taxmanrog, Certified Public Accountant (CPA) replied 6 months ago

If you borrow from your employer's 401(k) you may have more than 60 days to pay it back. Most 401(k) plans allow loans for up to 50% of the account balance. When you borrow the funds, you set up a repayment plan for an amount that you want over a period of time that you want, usually as long as 5 years, or sometimes 15 years if the withdrawal is to purchase or improve real estate. One of my co-workers borrowed $5k and is paying it off at $50 per pay period over 48 months. The interest charged adds to the 401(k) balance - you are paying your own return on investment.

The biggest disadvantage of a loan from an employer retirement plan is that any outstanding balance at the time you retire/quit/get fired is deemed to be a taxable distribution.

I hope this answers your question! If you have any more, please feel free to ask and I will be happy to answer.

Thanks! Have a great week!

Roger

Ask Your Own Tax Question
Ask taxmanrog Your Own Question
taxmanrog
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 927
927 Satisfied Customers
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.

taxmanrog is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

14,120 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I am filing MFS 1040 return. I have mortgage interest which
I am filing MFS 1040 return. I have mortgage interest which is paid from mine and husband joint account. Tax-wise it is beneficial for me to deduct more on schedule A than for my husband. Is it okay t… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,316 satisfied customers
If a trust is required to distribute a portion of its
If a trust is required to distribute a portion of its residue to a charity, can it deduct this residue distribution from taxable income? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Does the additional tax of 10% on early distributions (Form
Does the additional tax of 10% on early distributions (Form 5329 Part I) apply to an excess non-deductible IRA contribution received before taxpayer is 59 ½. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,316 satisfied customers
How can I reduce my tax liability? Now about 11K and 2K
How can I reduce my tax liability? Now about 11K and 2K state. It seem we don't qualify for many credits, thinking of filing married / seperate rather than joint. Also can contribute to IRAs to offset… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,316 satisfied customers
How do you split the tax liability from a house foreclosure?
how do you split the tax liability from a house foreclosure? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Retirement Plans - A schedule C, self-employed taxpayer has
Retirement Plans -A schedule C, self-employed taxpayer has a SEP retirement plan. She decided, starting in 2018 to hire employees. Does she have to offer the retirement plan to her employees?Thank you… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,316 satisfied customers
Is a claimants distribution from In reBank of America Corp
is a claimants distribution from In reBank of America Corp Securities Litigation Settlement Fund Taxable … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
How to amend the distribution part of a trust. California
how to amend the distribution part of a trust JA: Since estate law varies from place to place, can you tell me what state this is in? Customer: california JA: Has anything been filed or reported? Cust… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a tax question for required minimum distributions
I have a tax question for required minimum distributions after 70.5 years of age.Let's suppose someone takes 5 times the RMD in 2016. Can any portion of that money count for 2017? In other words, can … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Geetings- RE: Equitable distribution and distributive award.
Geetings-RE: Equitable distribution and distributive award.E.D. Judgment: marital home is over-valued. . Broker uses the courts over-valued sales price. . 5 five months later broker recommends $75K sa… read more
Patrick Mullis
Patrick Mullis
Masters
18 satisfied customers
My withholding exceeds my tax liability for each of the the
My withholding exceeds my tax liability for each of the the first three quarters of 2017. However, in December 2017 I received a taxable gift of $78,000 from which nothing was withheld. I know this mu… read more
abci168
abci168
Principal
27 satisfied customers
I recall a type of retirement plan called non-qualified
I recall a type of retirement plan called non-qualified whereby the company pays the retiring employee a payment, not from a standard funded ERISA plan but from its operating funds. The payment is ful… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,065 satisfied customers
What are our tax liabilities when we gift a large sum of
What are our tax liabilities when we gift a large sum of money and a house to our kids? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
From a tax liability perspective, what are the differences
From a tax liability perspective, what are the differences between filing taxes from a trust versus a personal income tax filing ?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,316 satisfied customers
What does "Distributions Other Than Dividend Distributions"
what does "Distributions Other Than Dividend Distributions" mean on a corporate tax return? Was the amount listed actually giving to the shareholder? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,316 satisfied customers
I have a summary of my retirement plan balances. MGH says
I have a summary of my retirement plan balances. MGH says they do not owe me the money. It doesn't say projected or estimated, it says my balance as of 12/31/13 is 14, 698.00. Don't they owe me this m… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Generally, 403()9 church retirement plans are not subject to
Generally, 403(b)9 church retirement plans are not subject to SECA taxes on ministerial salary reduction contributions. In other words, ministers will save almost 15 percent in SECA taxes by using a c… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,283 satisfied customers
Rules on Rollovers (Return of a non-taxed IRA Distribution).
Rules on Rollovers (Return of a non-taxed IRA Distribution). Over 70-1/2 years old) … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x