Can you loan your 401?

[UPS4Life]

I was wondering if you are able to loan against your 401k to pay off a loan. The reason I ask is because I don't want to withdraw and get penalized but wasn't sure if you could loan against it and pay that back instead. Not sure if this may be different by location but Any insight is greatly appreciated!


Sent using BrownCafe App

 

[IVE GOTTA PACKAGE 4U]

No. you can only borrow for a few certain things.

 

[McGee]

If you are vested, and the plan allows, yes you can ( I did it) BUT only for certain things...

 

[UPS4Life]

Yeah that's what I was able to find out also. Reason being would be to pay off a home equity loan to sell a house but to loan a 401 it sounds like you need to be all but foreclosed.


Sent using BrownCafe App

 

[McGee]

Or to invest in a 'safe stock' ( wouldn't do it), or if you KNOW your job is secure..

 

[UPS4Life]

Or to invest in a 'safe stock' ( wouldn't do it), or if you KNOW your job is secure..

I don't think I follow your message?


Sent using BrownCafe App

 

[McGee]

I wouldn't do it unless you had no choice

 

[IVE GOTTA PACKAGE 4U]

May I ask why you need to payoff the loan. Wouldnt the proceeds from the house,cover it?

 

[UPS4Life]

May I ask why you need to payoff the loan. Wouldnt the proceeds from the house,cover it?

To sell the house.


Sent using BrownCafe App

 

[IVE GOTTA PACKAGE 4U]

You dont need to pay it off,before you sell it.

 

[upsbeernut]

Foreclosure, school loan, when you turn old enough to have it, certain medical emergencies, and burials.

 

[toonertoo]

Yeah that's what I was able to find out also. Reason being would be to pay off a home equity loan to sell a house but to loan a 401 it sounds like you need to be all but foreclosed.


Sent using BrownCafe App

Yes you can get a loan for down payment on primary home.

 

[upsbeernut]

Yes you can also loan it to any full time employee with qualifying reasons.

 

[brownmonster]

May I ask why you need to payoff the loan. Wouldnt the proceeds from the house,cover it?

Under water?

 

[IVE GOTTA PACKAGE 4U]

Under water?

Maybe?. Thats why I didnt understand the question.

As a side note to everybody. Dont take a 401k loan out,unless It's the very last resort. it may seem convient. but dont mess with your future.

I know a few people that have taken out loans,that they shouldn't have.

Lost their job and couldnt pay it off. got hit with income taxes and penalties.

 

[Future]

I was wondering if you are able to loan against your 401k to pay off a loan. The reason I ask is because I don't want to withdraw and get penalized but wasn't sure if you could loan against it and pay that back instead. Not sure if this may be different by location but Any insight is greatly appreciated!

 

[upsbeernut]

Maybe?. Thats why I didnt understand the question.

As a side note to everybody. Dont take a 401k loan out,unless It's the very last resort. it may seem convient. but dont mess with your future.

I know a few people that have taken out loans,that they shouldn't have.

Lost their job and couldnt pay it off. got hit with income taxes and penalties.

Thank You!

 

[olroadbeech]

if you want the right answer, call the 401k people and ask them.

 

[IVE GOTTA PACKAGE 4U]

Thank You!

You owe me 2 beers,for my advice.

 

[Future]

You owe me 2 beers,for my advice.

Damn your given him the friend discount!!!1lol