401k / 403b contributions

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  • #38584
    tryinginmva
    Member

    Hello,

    Just wanted to see if anyone was able to successfully get their voluntary retirement account contributions counted towards their payment shock.

    As I recall, at the first event I attended, speaker said 401k contributions (not the match) are counted towards the payment shock however my MC stated that it isn’t the case.

    Thanks in advance.

    #38876
    truque94
    Member

    Hello,
    I have the same question, did you ever receive an answer for this?

    Thanks

    #38884
    TTrumble
    Member

    Hello tryinginmva,

    The full amount of your 401 k contribution (not any matching funds) can be counted toward Payment Shock.

    However, you should think very seriously before doing so. By counting your 401k toward Payment Shock, you are promising to terminate your 401 K contributions the moment you close on your home since those funds are now committed to your monthly mortgage payment for the next 15 or 30 years.

    You need to give serious consideration to the advantages or disadvantages of no longer saving for retirement before having your contributions counted toward your Payment Shock.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #39006
    tryinginmva
    Member

    Thanks @ttrumble

    Yeah if I have to stop contributing after closing, it doesn’t make sense in the long run.

    Appreciate the clarification!
    Best,

    Cenk

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