“Peace of Mind” bill

June 5th, 2009 by rcoons

My 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.

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3 Responses to ““Peace of Mind” bill”

  1. thinkoobfan Says:

    Defintiely better to borrow from themselves than from other people

  2. Tooz Says:

    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!

  3. dblacklock Says:

    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

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