Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I've never heard of this and it seems unlikely to me that a bank would accept it. Granted, my understanding of collateral has at least as many holes in it as your understanding of 401(k)'s. But why would they accept as "collateral" an account you could then turn around and empty?

Also, what do you mean by "transferring this amount in 401K shares to the bank"? What is a "401K share"?

73k a year in RMDs is pretty close to the 100K your hypothetical retiree needs. It would be less complicated to arrange for the other 27k to be in a Roth IRA.
Print the post  


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.
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.