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URL:  http://boards.fool.com/hi-culcha-somehow-that-doesnt-seem-right-maybe-30611767.aspx

Subject:  Re: 401(k) loan Date:  3/28/2013  4:30 PM
Author:  Dwdonhoff Number:  71539 of 75824

Hi Culcha,

Somehow that doesn't seem right. Maybe I am missing something, or not thinking about it in the right way?

Consider it this way;
When you took the loan, you spent that money the same as (and in replacement for) after-tax income money. In other words, whatever you spent that $50,000 on, if not for the loan you would have had to use after-tax money... right?

So, you're not re-contributing after-tax money to your 401K, you are simply replacing the after tax money you borrowed out and used as after-tax money expenditures.

Make sense?
Dave Donhoff
Leverage Planner
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