Can you loan your 401?

Discussion in 'UPS Retirement Topics' started by UPS4Life, Jan 5, 2015.

  1. UPS4Life

    UPS4Life Active Member

    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!

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  2. No. you can only borrow for a few certain things.
  3. McGee

    McGee Well-Known Member

    If you are vested, and the plan allows, yes you can ( I did it) BUT only for certain things...
  4. UPS4Life

    UPS4Life Active Member

    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.

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  5. McGee

    McGee Well-Known Member

    Or to invest in a 'safe stock' ( wouldn't do it), or if you KNOW your job is secure..
  6. UPS4Life

    UPS4Life Active Member

    I don't think I follow your message?

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  7. McGee

    McGee Well-Known Member

    I wouldn't do it unless you had no choice
  8. May I ask why you need to payoff the loan. Wouldnt the proceeds from the house,cover it?
  9. UPS4Life

    UPS4Life Active Member

    To sell the house.

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

    upsbeernut Sometimes I feel like a nut, sometimes i dont.

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

    toonertoo Most Awesome Dog Staff Member

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

    upsbeernut Sometimes I feel like a nut, sometimes i dont.

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

    brownmonster Man of Great Wisdom

    Under water?
  15. 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.
  16. Future

    Future Well-Known Member

    Last edited: Jan 5, 2015
  17. upsbeernut

    upsbeernut Sometimes I feel like a nut, sometimes i dont.

    Thank You!
  18. olroadbeech

    olroadbeech Happy Verified UPSer

    if you want the right answer, call the 401k people and ask them.
  19. You owe me 2 beers,for my advice.
  20. Future

    Future Well-Known Member

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