If I take a loan out on it today - I have to pay back the loan with dollars that I've already paid taxes on - so then my 401K becomes a mix of some money that's pre-tax, and some that was to pay back a loan and is therefore post-tax. 1.) Withdraw pre-tax money. Spend it as post-tax.2.) Repay with post-tax, which becomes pre-tax. There is no double taxation on the principle. There is double taxation on the interest, but interest paid on a consumer loan is also paid with taxed funds. There is no difference in the result.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra