Home > Blogs > Illinois > Cook County > Chicago > Bill May Allow Home Owners to Tap Retirement Accounts
66,915 views

Art Wilson's Blog

By Michele & Art Wilson | Broker in Lake Forest, IL

Bill May Allow Home Owners to Tap Retirement Accounts


Bill May Help Home Owners Tap Retirement Accounts

Daily Real Estate News | Thursday, October 06, 2011

A new bill introduced in Congress this week, if approved, would allow home owners to withdraw funds tax-free from their retirement accounts to help pay for their mortgage. 

The Home Act, introduced on Wednesday by Sen. Johnny Isakson, R-Ga., and Rep. Tom Gravees, R-Ga., would allow home owners to take up to $50,000 from their retirement account or half of the current value of their account to help pay their mortgage without incurring the standard 10 percent tax penalty, HousingWire reports. Any money withdrawn would be required to go toward paying the mortgage within 120 days to avoid the tax penalty.

"This bill will help Americans who are at risk of foreclosure use their own resources to make their mortgage payment on time without being penalized by the federal government," says Isakson. "I firmly believe that economic recovery in this country will not occur until the housing market bounces back."

Comments

By Wes Black,  Thu Oct 6 2011, 10:47
This program may help some homeowners avoid foreclosure. Let's hope this passes.
By David Hanna,  Thu Oct 6 2011, 10:52
Anything helps, but few homeowners who are behind in their payments will want to risk what little secure funds they have left in the world to shore up an asset underwater and declining in value.
This bill is a headline grabber that will do little to stem the inevitable tide of foreclosures.
By Ruth & Perry Mistry,  Thu Oct 6 2011, 15:10
Bill great blog, this is necessary.

Perry

http://www.trulia.com/blog/perry_mistry/

POST
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer