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Question

Asked 11/14/2008

Can I purchase a vehicle with my 401k without being taxed?

Low income to medium income people with not a lot of money, can they use the 401k to purchase a vehicle for main transportation?

 
 
 
 
 
Answers

Answer 1/1 - Submitted 11/15/2008

No, whatever you withdraw, except for a few situations like buying a house, they take twenty percent penalty tax out immediately, then you will pay on average another ten percent at the end of the year at income tax filing time!

 
 
 
 
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