Somehow that doesn't seem right. Maybe I am missing something, or not thinking about it in the right way? It's not quite as bad as you think. Bad, though, just not quite that bad. If you *accurately* track the money flow you'll see that you don't quite get taxed twice.But, yeah, taking a loan out of a 401K is expensive. You'd almost think that Congress wanted people to use their 401K strictly for retirement and therefore penalized other uses for a 401k. ;-)Hopefully you won't discover the REALLY bad thing about 401k loans. If you leave your job -- quit or get laid off -- you generally have 30 days to pay off the entire loan balance, or it will be considered an early withdrawal and you'll get hit with income tax and hefty penalty.
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