No. of Recommendations: 0
Greetings, Kalimsmith, and welcome. You wrote:

<<Would it be better for a working 60yr old to take out a substantial loan from his 401K or just pull the money out of the 401K. What would be more "Foolish" considering taxes etc. >>

The loan would definitely allow you to access your money without worrying about taxes today; however, you would have to begin repayments immediately with interest. The interest goes to your account, but it's paid in after-tax dollars and will be taxed again as earnings on that 401k when you finally retire. Additionally, when you do retire, any outstanding loan balance will be treated as a distribution to you in that year, which means it will be taxed in that year. Only you can run the numbers to see if the loan is "better" for you based on those circumstances.

Regards..Pixy
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement