Reply to 401k or downpayment on house?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I would not stop contributing.  In your situation, I would take loans from both 401(k)'s (the max of 50K or half the balance is allowed) as part of the down payment, and then use the relatively high income to pay back the loans quickly.[/quote]

Clever.[/quote]

Not that clever. The money would need to be paid back straight away if the employee loses or changes jobs.[/quote]
It doesn't even make any sense, because OP doesn't get a match. Her retirement savings = whatever assets she can save until retirement and a primary residence is part of that. Whether OP saves that in a retirement account of through other means will only have tax implications, whether paid now or deferred. Buying a residence will also provide a tax deduction.[/quote]

The 401k contributions are pretax.  The mortgage deduction is limited by the amt.  really the 401k, whether matched or not, should be a priority, especially if you're in a high tax bracket.  Think of it this way:

Would you rather earn 18k and invest 18k in the 401k OR bring home 11k out of the 18k you earned and invest 11k in a brokerage account?  [/quote]

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