The restrictions are that it would have to used for down payment on your property. Just be cognizant that if you leave UPS, then you'd have to pay back that loan, immediately I think, or pay taxes and penalties, which are hefty.Can anyone tell me if I am a participant in the teamsters 401k if I would like to take out a loan for a down payment on a property what are the restrictions on the loan how soon does it have to be paid back?
You have 90 days to pay it back after you leave employment. Otherwise it's considered a withdrawal with taxes and penalties dueThe restrictions are that it would have to used for down payment on your property. Just be cognizant that if you leave UPS, then you'd have to pay back that loan, immediately I think, or pay taxes and penalties, which are hefty.
You are correct. It UPS rules,not the IRS.They have a list of things that are eligible to withdraw money from your 401k for. Ours is more restricted than most. My wife's 401k is a lot more flexible. She can borrow money for any reason.
They have a list of things that are eligible to withdraw money from your 401k for. Ours is more restricted than most. My wife's 401k is a lot more flexible. She can borrow money for any reason.
You are correct. It UPS rules,not the IRS.
I'd you got to borrow the down payment, you can't afford the house.I agree with the tighter rules. 401k's should not be thought of as "piggy banks".
After you qualifyHow long if I do stay employed which I hope to
A 401k is not a savings account. Start a savings account with auto withdrawals into it if you want.How long if I do stay employed which I hope to
You have to have an account with a balance in it. An example may be you have 100,000.00 in it and need 25,000.00 for a primary residence. You may qualify and the loan may be structured as a 5,10 or 15 year term. The monies come out of your checks until paid back.How long if I do stay employed which I hope to
I have heard of some who borrow enough to cover the 20% down to avoid the MIP. To me this is smart to pay yourself back instead of extra fees on the loan.I'd you got to borrow the down payment, you can't afford the house.
Not worth losing all of that extra growth.I have heard of some who borrow enough to cover the 20% down to avoid the MIP. To me this is smart to pay yourself back instead of extra fees on the loan.
I guess it depends on how good the deal was, or the amount borrowed.Not worth losing all of that extra growth.
You do have a good point but. Unless it's a deal of a lifetime I wouldn't touch the 401k. If you can't afford the down payment that means you don't have any money in an emergency fund. If something needs repaired or replaced ,then what?I have heard of some who borrow enough to cover the 20% down to avoid the MIP. To me this is smart to pay yourself back instead of extra fees on the loan.
Good points.You do have a good point but. Unless it's a deal of a lifetime I wouldn't touch the 401k. If you can't afford the down payment that means you don't have any money in an emergency fund. If something needs repaired or replaced ,then what?