“Peace of Mind” bill
June 5th, 2009 by rcoonsMy bill would allow the withdrawl of a Qualified Savings Plans (401k’s and the like) for the sole purpose of paying off your primary residence mortgage loan. The withddrawl has a 15% long term tax rate for the federal government, no other taxes. No 10% penalty no state tax just the 15% long term capital gains rate. Banks have loans closed out, money flow increases for thier bottom line, they can lend again. The home-owner can utilize the catch up over 50 rule to build up thier qualified retirement accounts again with the “peace of mind” that thier family will always have a roof over thier head and a bed to sleep in. Some advantages would be that a home owner fullfills a dream of total home ownership and has the “peace of mind”. The banks can close out loans, have money to lend again. The world see’s the United States of America serious about making a difference, paying off thier debt, and will want to invest in the American dollar currency with confidence.
June 9th, 2009 at 9:23 am
Defintiely better to borrow from themselves than from other people
June 9th, 2009 at 11:37 am
Would you suggest any restrictions on refinancing after the pay-off?
If that was allowed and I had the 401k/IRA funds, I would pay 15% in taxes and pay my house off. Then I would refinance at the current 5% or so, pay off car (8%), student (7%) and credit card (12%+) loans, deduct the mortgage interest and closing costs, and invest the rest to make up the 15% taxes in 1-3 years. Terrific idea!
December 5th, 2009 at 4:03 pm
Atg different times, I paid off credit card loans for 2 of my grown sons to get them out of 16+% interest. They both thanked me profusely, then they and their wives proceded to do it again. I still think yours is a good idea. Not everybody raises such low learners.
DB