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https://boards.fool.com/any-interest-you-pay-in-is-added-to-your-balance-30948851.aspx
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| Subject: Re: Thinking Of Borrowing??? | Date: 10/30/2013 2:26 PM | |
| Author: MetroChick | Number: 307440 of 313016 | |
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Any interest you pay in is added to your balance - you're paying yourself that interest, not a bank. But you end up paying taxes twice on the money you're putting back into your 401K - you're repaying the 401K loan with after-tax dollars, and once you hit 59.5 and can withdraw, you pay taxes on money you withdraw from your 401K - so you end up paying taxes 2X on that portion of money you borrowed from the 401K. |
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