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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: 401(k) loan Date: 3/28/2013 4:30 PM
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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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