Reply to Should I stop saving in 401K for short period to increase house down payment fund?

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[quote=Anonymous]DH and I currently max out our 401Ks (to the IRS limit each, approx $18K per year).  We have done this as long as we've been married, so currently have over $300K in retirement funds (aged late 30s).  We are looking to buy a house in the next 2 years or so.  We have a decent down payment saved now (approximately $150K) but am thinking of reducing 401K contributions for next 2 years or so to significantly increase down payment.  We both have 401K match, so I would reduce contributions to the match amount.  For just me (haven't run the numbers on DH), I'd contribute $1100 or so less per month to 401K but that would all go to down payment fund.  So, in two years, could have another $26,400 down payment (probably about the same for DH, so maybe increase of $50K in down payment combined).   I know that over time, that money in the 401K makes more but I think that I would value having a lower monthly mortgage more than incremental 401K savings.  Has anyone done this?  Thoughts?  Tax implications?  Thanks![/quote]

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