Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
The after-tax contributions is a point that may be going somewhere, I may be too dumb to get exactly what you're saying ;-)


I don't know how to explain this clearly but I'll try. If you withdraw $10K in pre-tax $$, you will need to earn $10K +15% to replace it with after-tax dollars. I may be wrong (and I hope someone more knowledgable will correct me), but it seems to me that you take a 15% loss on your money just by withdrawing it.

Also, I think you will be taxed on it again in the future when you withdraw it for good. Why pay taxes on it twice?

Also, check with your plan administrator. Our plan will not allow you to continue to make contributions if you have a loan so you lose the contributions and earnings for the time frame of the loan.

Also, if something happens and you lose your job, God forbid, that note is due and payable. If you can't pay it, you have to pay the taxes on it plus a 10% penalty. I hope this helps.

Minxie
Print the post  

Announcements

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