I am changing jobs and will be rolling over my $300,000 401k in a CD. Can I invest in real estate without being penalized?
These questions are best left to a financial advisor familiar with your situation, but in general terms, no. If you are younger than 59 1/2, if you do not rollover a qualified retirement account into another qualified retirement account, you face a 20 percent tax withholding and a 10 percent penalty for early encashment. Based on the question, it sounds as though this may be a self-managed or speculative real estate investment and not a qualified plan. Speak with a qualified financial professional.
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These questions are best left to a financial advisor familiar with your situation, but in general terms, no. If you are younger than 59 1/2, if you do not rollover a qualified retirement account into another qualified retirement account, you face a 20 percent tax withholding and a 10 percent penalty for early encashment. Based on the question, it sounds as though this may be a self-managed or speculative real estate investment and not a qualified plan. Speak with a qualified financial professional.
