I'm thinking of borrowing from my 401k to fund a roth IRA, what would be the downside to doing this? Thanks in advance. Kurt Sounds like a bad idea to me. If something happened and you had to leave your current job, the entire 401k loan would have to be paid back immediately. If not done immediately, you get hit with a huge tax penalty.A lot of people I have talked to over the last several years have come to think of their 401k as a savings account rather than a retirement account. Put the money you would have used to pay back the 401k loan straight into a Roth IRA account. If you do not have the minimum to open a Roth with the financial institution of your choice, then why not save up the money in a regular savings account at the bank? When you reach the minimum to open a Roth account, close out the banks savings account and send the money to your Roth.Hope this helps,Taylor
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 Rat