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Edited by Christopher Simmons, senior news editor

NEW WEBSITE OUTLINES PITFALLS AND BENEFITS OF BUYING A HOME WITH THE HELP OF A 401(K) AND IRA

ALEXANDRIA, VA - Nov. 25, 2002 /Send2Press Newswire/ -- One of the most difficult parts of buying real estate is coming up with the downpayment. Yet many would have the downpayment if they could access their 401(k)s, IRAs, and other qualified retirement plans. The problem is that few people know how to tap their retirement savings in ways that wonÕt trigger stiff tax consequences. That know-how is now available free online.

On average, Americans have about $3,400 of personal savings in the bank. However, this figure pales to the more than $40,000 on average they have in their 401(k) or the more than $30,000 they have on average in an IRA, according to the latest figures by the ABA Retail Banking Survey, Employee Benefit Research Institute (EBRI), and the Investment Company Institute (ICI).

"I think thereÕs a general misconception among the public that if you dip into your retirement accounts youÕll be hit with all kinds of taxes and penalties," said Daniel Lamaute, chairman and chief executive officer of Lamaute Capital, Inc. "But thatÕs not necessarily the case."

Lamaute Capital recently launched www.investsafe.com, which provides vital information about how first-time homebuyers and others can use their retirement money for home buying Ñ and avoid taxes or penalties.

One of the most flexible options involves using an Individual-401(k) loan available to small-business owners or the self-employed. It allows a couple to jointly borrow up to $100,000 of their retirement money (or 50 percent, whichever is less) tax-free and penalty-free, as long as the money is paid back. You can use the loan for home buying, home improvement, home decorating, anything. If you use the money to buy a primary residence, the loan term can be extended from the normal 5 years to 10 years.

Another little-know financing option allows you to tap your IRA without penalty to help a family member buy a first home. In this case, the maximum that you can withdraw without penalty is $10,000 and it must be your first time using the homebuyer exclusion.

Consumers can visit http://www.investsafe.com/housefinancing.html to learn more about using IRAs and other retirement funds to come up with home down payments. For further information:

URL: www.investsafe.com

Source of news: Lamaute Capital, Inc.