Can you use 401k to buy a car

The IRS explains that people who take distributions before they turn 59½ can face stiff tax penalties and early withdrawal fees, but using your 401 (k) to buy a car may be the right decision under certain circumstances. You may also be exempt from some of the typical …

Depends on your alternatives, Robert. If the only other way to buy the car is a standard car loan, then yes, I’d borrow from my 401 (k), because I’d undoubtedly be paying it back at a lower —…

How to Purchase a Car Using a 401(k) | Sapling

Official Site: https://www.sapling.com/2075564/purchase-car-using-401k

You cannot borrow the full balance of your 401(k) account to pay for a vehicle. Federal law limits 401(k) loans to $50,000 or half of your account balance, whichever is less. There is an exception to this rule, however. If 50 percent of what is in your 401 (k) amounts to less than …

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Should I Cash Out My 401K to Pay For a Car? Video Answer

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