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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Borrowing from your 401(k) Date:  8/20/2013  10:31 PM
Author:  vkg Number:  307215 of 312185

The 401k plan im in imposes a $3 monthly fee for having a loan with them on top of a 12% interest you pay back and you can't pay extra on it. Also theres a $50 fee just for getting the loan!

Sunwest federal credit union 7.99% fixed rate signature loans much cheaper and not line Schwab pocket full of fee

It isn't possible to pay additional amounts on a 401K, but the entire remaining balance can be paid. This isn't a restriction unique to Schwab.

$3 monthly fee and $50 initiation fee aren't unreasonable management fees. The interest payments don't go to Schwab.

If the borrower can qualify for a signature loan, it is probably a better choice.
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