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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 309001|
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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