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Author: pkrepps Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25214  
Subject: Re: 401K Loan to Fund Roth? Date: 3/9/2000 3:46 PM
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You wrote:
Do you think you'd make better enough returns on your investments through the IRA to replace 1.) the interest money you'll be paying on the loan and 2.) the employer matching, if you get any?

Why not just leave the money in the 401K that you have there now, but reduce your future contributions? Keep contributing enough to get all the employer matching (i.e. free money) you can, and then put the rest
of the money to the Roth.

Or, if you think there may be a possiblity of leaving your job soon, you could move it into a roll-over IRA then, instead of rolling over to a new employer's 401K.
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Thanks for your reply, Jenniebez. I consider the interest money a wash, since I am paying it to my own 401k. I would not lose any money from employer matching, since that is added along with my new contributions every payday.

Your advice on reducing my 401k contribution to the minimum required to take full advantage of my employer matching is a good one; I did that several months ago when I started the Roth. I will continue to add to my Roth incrementally, but would like to put that $8,000 to work right now. It is a bit of a guess as to whether I can significantly beat the S&P 500 fund, but I would be happy to give it a try.

Finally, leaving my job and rolling the 401k into an IRA would be great, but I don't plan to leave anytime soon. Unless you know something I don't . . .
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