Reported about 15 hours ago
A Spokane resident, Marty, faces a shocking $140,000 tax bill after withdrawing $400,000 from his 401(k) to purchase a home, believing he had accounted for all taxes. On The Ramsey Show, hosts advised him against risky financing options like HELOCs and credit cards, recommending he utilize his savings and consider a personal loan to avert severe IRS penalties. Marty's case underscores the potential pitfalls of early 401(k) withdrawals, which can incur hefty taxes and long-term financial repercussions.
Source: YAHOO