Millennials, Don't Make This Major Money Mistake
Saving up for a down payment on a home is easier said than done, especially when you're grappling with bills, debt, and other expenses that eat up most of your income. But for millennials who are already strapped for cash and trying to make progress in their financial lives, there's a disturbing tendency to tap into their retirement savings for a down payment on a home.
On the one hand, raiding a retirement plan for a down payment on a home may not seem like the worst idea. After all, that money is yours, and if you can withdraw it penalty-free, why not use it?
And to be clear, you can remove up to $10,000 from an IRA for the purpose of buying a first-time home without incurring an early withdrawal penalty, even if you're nowhere close to 59 1/2 (the age at which those funds become yours to withdraw unrestricted). If you and your partner each have an IRA, you can withdraw up to $20,000.
Source Fool.com
