Loan from 401k

S

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
 

browned_out

Well-Known 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
 

MR_Vengeance

United Parcel Survivor
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

are you in the service?
 
A

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.
 

JohnnyPension

Well-Known 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
 
B

brown and down

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

The 401K website says I can't.

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.
 

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?
 

upsgrunt

Well-Known Member
I want to get a withdrawal to help with expenses towards buying a new house.

The 401K website says I can't.

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.
 

Harley Rider

34 yrs & done!
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.

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.
 

filthpig

Well-Known Member
I want to get a withdrawal to help with expenses towards buying a new house.

The 401K website says I can't.
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.
 

HazMatMan

Well-Known Member
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

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...
 

Dfigtree

Well-Known Member
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

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.
 

fr8dog

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.

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.
 

Fnix

Well-Known 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.
 

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.
 
B

buchman

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

The 401K website says I can't.


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.
 
Top