401 k to help the economy?:?

[HeadShot]

Just a thought... and yep its way OFF TOPIC from everything i love about this site...

401K cash out???
What if the government let 401k contributors use their 401k plan or part thereof, in a onetime tax free pay down of their mortgage.
I mean most of us will not cash it out till retirement to avoid the tax repercussions, so the money sits out of circulation. If it was used towards a mortgage tax free, it would instantly have a positive effect on the economy.
Any merit to this idea??

:mech:

[Erik]

I try to follow the news, but what the h**l are you talking about? :D

[HeadShot]

Srry... thinking out loud. I think my head is still suffering from New Orleans Mardi Gras. LOL. good times.
New job.. i'm changing over my 401k savings and was looking at the numbers wishing i could use it now. On my car would be nice but my wife would then take half and leave hee,hee. So the house was the second thought.
I'll quit while im behind. :) probably need another beer.

401k is a savings plan you pay into while employed - your employer matches usually around 6%, you can pay in usually up to 20% of your pay before tax. When ya retire you can get to it tax free but untill then if you take any out ya get slammed on that $ with TAX.

did some time in Malmo yrs ago..... loved it. Except gas prices LOL.