Loan from 401k

Discussion in 'UPS Discussions' started by sargent, Sep 11, 2007.

  1. sargent

    sargent Guest

    Hellow Fellow UPSer's First time Here.
    I need to take a loan from my 401k and pay it back with intrest to my account. They only allow you on certain condtions in wich none of them fits my conditions. anyone of you has a suggestion? id rather pay myself interst than to another bank
     
  2. browned_out

    browned_out Member

    :crying: As far as I know if you don't fall into the limited catagories that they offer your out of luck. I checked into it about 10 years ago, and was unable to do it, maybe things have changed. Good luck
     
  3. MR_Vengeance

    MR_Vengeance United Parcel Survivor

    are you in the service?
     
  4. Anon1

    Anon1 Guest

    You don't want to take the loan from your 401k. It seems like you are paying yourself interest but in reality you are taking away from your retirement that you can never get back. The other important thing to remember is that is you become separated from UPS (I know none of us plan on it, but things happen) your loan is due in full immediately.
     
  5. JohnnyPension

    JohnnyPension Member

    Hi Sargent

    I agree with browned_out. You cant get a loan unless you are eligible for one of the hardship or education loans. Always thought this was strange as most other plans you can get a loan for almost anything as long as you agree to pay it back.

    John
     
  6. govols019

    govols019 You smell that?

    I want to get a withdrawal to help with expenses towards buying a new house.

    The 401K website says I can't.
     
  7. I am pretty sure if you are either using the money to purchase your primary residence or to avoid forclosure of your primary residence, you can borrow against your 401k.
     
  8. govols019

    govols019 You smell that?

    You are unable to take a Hardship withdrawal at this time for the following reason:







    • Access denied - Package Only
    Anyone know what that means?
     
  9. upsgrunt

    upsgrunt Well-Known Member

    I did it when I bought my current house 10 years ago-I'm still making the payments as I chose the 15 year payback period. They deduct the payments right out of my check.
     
  10. Harley Rider

    Harley Rider 30 yrs & counting

    Same here. Borrowed 15,000 from my 401k for down payment on primary residence. I wouldn't have done it but I was about to lose a great deal on a house and had not sold mine yet. If I am not mistaken you can only borrow up to 50% of what you have in your account.
     
  11. filthpig

    filthpig Active Member

    You can get a withdrawal for that I know, because I did. Needed more than I could borrow so I just withdrew. I figured it was sound because I was buying a house. Would have lost a lot when the market tanked anyway, so I came out alright. And the loan is due when you separate from UPS but they just take it out of what is in your account.
     
  12. terrymac

    terrymac New Member

    I hear David Ramsey screaming in the back ground ... noooooo... nuff said.
     
  13. brownmonster

    brownmonster Man of Great Wisdom

    I can get a loan anywhere.....I want to retire loaded!
     
  14. raceanoncr

    raceanoncr Well-Known Member

    Man, I wouldn't do that. The penalties far outweigh the benefits of other kinda loans.
     
  15. HazMatMan

    HazMatMan New Member

    Your :censored2: out of luck. You do not fall into a catagory that allows you to withdraw from the 401K. Are you full time?? Go to your credit union for a loan...
     
  16. Dfigtree

    Dfigtree New Member

    A quick google provides this link:

    http://en.wikipedia.org/wiki/401(k)#Withdrawal_of_funds

    I seem to recall this question coming up before. Basically, if you need to hit up your 401K to afford a house then you cannot afford the house. Have you calculated your monthly expenses on this home? I think you may have difficulty making the replenishment payments back to your 401K. And there may go your retirement funds. There are more data needed to analyze your situation. Do you have credit card debt? What is your FICO score? How old are you? Do you have college bound offspring? Do you have/need life insurance (term) to protect your family. Etc, etc, etc. Pay your mortgage out of your paycheck. Do not sacrifice your retirement for a house. Good luck. IMHO.
     
  17. fr8dog

    fr8dog New Member

    Same here. I borrowed mine 6 yrs ago. You can borrow 1/2 of what you have in your account up to $50,000.00. Worked out great for me. Market tanked right after I borrowed and my house appreciated well ahead of the market. Remember you are paying yourself back with after tax money so the big draw back is you will be taxed on the borrowed money twice. 1st when you repay loan, 2nd at retirement. Still a good deal if purchasing a home.
     
  18. Fnix

    Fnix Active Member

    I am going to take all $1200 out of my 401k and buy useless modifications on a depreciating asset, my car. Can't wait until I drive and start putting into 401k per week what I earn per week now as part time.
     
  19. brownmonster

    brownmonster Man of Great Wisdom

    I saved up for a down payment and then bought a house. What a dinosaur huh? Not a castle but it takes 4 days take home pay to make the payment.
     
  20. buchman

    buchman Guest


    in fact you can! you may pull out a max amount of 50k but thus must be predetermined under a hardship loan. if your married, your spouse may do the same. 100k is an admirrable amount of money to put down on a home...go for it! also, i believe these moneys may only go towards the down payment. you must have cash for closing costs, etc.