🏡 Should I use 401k to pay off mortgage for spousal security?

Finn

This calculator helps homeowners weigh the financial impact of cashing out a 401(k) to pay off a mortgage, which can be a tempting move when facing a sudden loss of income. As a remix, it completely replaces the original life insurance template with entirely new logic for retirement withdrawals and loan costs. It provides a helpful breakdown of the upfront tax hit and the potential lost investment growth. However, the final net loss calculation currently mixes pre-tax retirement dollars with after-tax mortgage savings, and the model assumes you won't reinvest your freed-up monthly payments, so you'll want to adjust for those factors before making a final decision.

Reviewed v26.9.0