Quote:
Originally Posted by firstdown
No I'm correct. Your too smart to know people don't do this all the time. You used your 401 to save the money to buy a home. Most people do not think that far out and they decide to buy a home and because they have no savings they tap into their 401. Thats money they will never pay back.
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Umm, you're required by law to pay back that money within 10 years....and the consequences for not doing so is that it will be treated as a withdrawal with you owing Uncle Sam taxes on the distribution plus a 10% penalty on top of it.
Do you have statistics that shows most people don't pay back and that you are right?