All Questions
39
questions
2
votes
1
answer
292
views
Borrow from 401k (and pay interest to myself) or take a loan from bank (and pay interest to the bank) to buy a car?
Should I borrow against my 401k at 6% interest rate (which I pay to myself) or take a loan through a bank at 3.5% interest rate (which is paid to the bank)? Buying a car for my kids and can't afford ...
- 21
4
votes
1
answer
493
views
401K Loan - Company switched providers and rules
My company (a large health co) merged with a larger Pharm Co. In this process, we basically got all the Pharm Co benefits. When with the health co, I took out a 401k loan which had the provisions that ...
- 41
5
votes
2
answers
257
views
Taking out a 401K Loan vs. Liquidating Investments - what's better?
Let's assume the following:
I need $50K for various expenditures (aka simply spending, not paying off CC debt or putting the money somewhere else).
I can either liquidate regular taxable investments ...
- 119
2
votes
1
answer
171
views
How does 401k loan default after you left your job?
I'm trying to find some basic answers here but having a very hard time. I have a job currently and I'm about to lose it. I have pulled out a 401k loan and paying it back through the payroll deduction.
...
- 21
2
votes
1
answer
51
views
Paying taxes on a converted old retirement account to a Roth IRA from a 401K loan from current employer?
I have an old 403B plan, I am 47 years old and would like to convert part of it to a Roth. I would like to convert $100k to the Roth, but will then have to pay taxes on the conversion. Lets just say ...
- 21
6
votes
3
answers
2k
views
Was 50k loan limit always a part of the 401k program and are there any ways around it?
I got a loan from my 401k that I repaid a while back and I don't remember anything about a $50k limit. Now I am buying a new house before I sell mine and the $50k limit seems to be ridiculous since ...
- 4,727
3
votes
2
answers
230
views
Should I prioritize repaying my 401(k) loan over maxing out my 401k contributions?
I took out a $22,000 loan (over 7 years) against my 401(k) for the purchase of a new home. I currently owe $15,000 on that loan. While I make 401(k) contributions each paycheck, I am not making the ...
- 33
15
votes
7
answers
5k
views
401k loan & repayment: double taxation?
I've heard a few people say that taking out a loan against your 401K and repaying it means that you are taxed twice:
You are repaying your loan using after-tax dollars
You are going to be paying a ...
- 733
4
votes
3
answers
2k
views
Does a 401(k) loan count as debt when calculating Debt-to-Income Ratio?
Does a regular 401(k) loan count as debt when calculating one's Debt-to-income ratio when applying for a mortgage?
The loan is within the organization that manages the 401(k), and it does not show in ...
- 742
3
votes
2
answers
950
views
Should I pay off my 401(k) loan ASAP?
I recently saw a question on the forum about "Should I pay off my Home LOAN from my 401(k) or continue to pay Interest to myself".
Most responses seemed to think that paying it off ASAP was the best ...
2
votes
2
answers
641
views
Can I reduce the tax penalty on a 401k loan default by making an additional contribution?
I changed jobs recently, not of my own volition. I'm now rolling over a 401k account with my previous employer to one with my current employer. Three years ago I took a 401k loan with a 10 year term ...
- 125
2
votes
2
answers
514
views
How long do I have to pay back a 401(k) loan?
I have a loan taken out on my 401k through Fidelity. The loan originated on this date: 12/19/2017. I will be leaving my current workplace and moving to a new workplace that uses John Hancock 401k.
...
- 67
2
votes
1
answer
95
views
Pay off loan with MESP 529?
I made a bad decision and took a 401k loan last year. I question whether I could pay off the loan with a 529 account I have through Michigan education savings plan. I would not be pulling any money ...
- 67
0
votes
3
answers
205
views
Process of 401k loan removal
I understand that me taking a 401k was not a good idea so please as much as I know people want to tell me that I already know. I made a mistake...and did take a 401k loan out of my current employer.
...
- 67
25
votes
5
answers
9k
views
Who gets the interest on a 401(k) loan?
I was looking at some information about my 401(k) and noticed that it's possible to take out a loan from your 401(k) - it was something like 6.5% interest, which probably isn't as good as a ...
- 1,159