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[quote=Anonymous][quote=Anonymous][quote=Anonymous]
It is &quot;moronic&quot; because retirement is not savings.  Retirement is retirement.  You would withdraw [b]&gt;50%[/b] of your [b]retirement savings[/b] to use for the downpayment.
You should be able to afford such a house on your income, assuming that you save for a downpayment.  But you have not so saved.  Instead, you intend to raid most of your retirement account.  Not savings, retirement.  
You have $50K for a downpayment.  Not $170K.  Therefore you cannot afford the house.
How old are you?  $80K isn't much to have in a retirement account, whether you are 31 or 39.[/quote]
So retirement savings is an improper term...
You didn't read well, or I didn't express myself well.  Besides the 401K, we have two defined-benefits generous pension plans, which we won't (can't) touch.  If we don't touch the 401K, it will provide just under a third of retirement income from retirement accounts (excluding SS, which obviously is minimal).  So I would withdraw not one-half but one-sixth of our retirement savings to do something that we highly value:  a smallish outdated affordable home that works perfectly for our school/work commute.  By the way, right now I have $200K in that 401K. (By the way, a hardship withdrawal incurs the 10% tax penalty, but not the 20% withholding penalty.)
We can agree to disagree: you say that I cannot use that money, which bears my name and which I can easily access.  I say I shouldn't do it if possible, but given the circumstances I will consider doing it to fulfill an important life goal.  That said, I do thank you for your time providing your insight.[/quote]

I'm amazed by how obnoxious and judgmental some of you posters are.  If PPs take money from their 401Ks, so be it.  It's THEIR MONEY.  They put it in there.  YOU DIDNT.  So why are you so angry?  You do what you think is best, and they'll do what they think is best.[/quote]

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