Saturday, May 1, 2010

Open Question: What is for first-time homeowner - withdrawal from IRA or loan from 401K?

I can borrow $50,000 from my 401k for my new home. What I am wondering is - is it better to borrow $40,000 from my 401k and then take an early withdrawal $10,000 from my Roth IRA, or is it better to borrow $50,000 from my 401k? It is a first home so there should be no tax penalties associated with either method. Thanks -

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