# She'll Need $10,000 to Close on a Home at 62

> A seller credit saves a 62-year-old buyer $12,821 from 401(k) withdrawal and $2,821 federal tax.
- Title: She'll Need $10,000 to Close on a Home at 62 · 24/7 Wall St.
- Summary: A seller credit saves a 62-year-old buyer $12,821 from 401(k) withdrawal and $2,821 federal tax.
- Keywords: seller credit, 401k withdrawal, federal tax, closing costs, social security, medicare, irmaa, conventional loan, fha loan, va loan, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/11/08/shell-need-10000-to-close-on-a-home-at-62-a-seller-credit-will-spare-her-a-12821-401k-withdrawal-and-2821-in-federal-tax
- Author: Gerelyn Terzo
- Published: 2026-11-08T23:02:55+00:00
- Read time: 1 min
- Topics: seller credit, 401k withdrawal, federal tax, closing costs, social security, medicare, irmaa, conventional loan, fha loan, va loan
## Closing Costs at Age 62
A 62-year-old buyer needs $10,000 for eligible closing costs to complete a home purchase.
## Tax Impact of 401(k) Withdrawal
Withdrawing $12,821 from a pretax 401(k) costs $10,000 after federal tax at 22%.
## Seller Credit Saves Tax
A seller credit covers closing costs and avoids $2,821 federal tax for the buyer.
## Social Security Taxability
Her provisional income passes $25,000, making part of Social Security benefits taxable.
## Medicare Premiums
Her income at 63 sets Medicare Part B premiums at $81.20 monthly for 2026.
## Seller Credit Limits
Conventional loans cap seller credits at 3% with less than 10% down or 6% with 10% down or more.
## Price Cut vs. Seller Credit
A $10,000 price cut saves $2,000 at closing but lowers monthly mortgage payments by $51.
## How to Use Seller Credit
Match the seller credit to closing costs, plan for $1,282 from 401(k) per $1,000 needed, and check income thresholds.
## Key takeaway

A 62-year-old buyer avoids $12,821 401(k) withdrawal and $2,821 federal tax by using a seller credit for closing costs.