Borrowing Money From A 401k, TSA Or Other Defined Contribution Retirement Plan
If your retirement plan allows loans, you can usually borrow money from a 401K, TSA or other defined contribution retirement plan very quickly. However, it is advisable to consider all your other options for accessing cash, and the consequences of each alternative, before moving forward with a loan. All in all, while there are advantages to borrowing from a retirement plan, borrowing from your retirement plan is one of the last options you should consider for accessing cash. We describe a variety of alternatives in the following articles.
As you'll see, one of the ways is to look at your assets to see if there are new uses that would provide you money now. For instance, it may be possible to borrow against or even sell your life insurance policy (a sale is known as a "Viatical Settlement" or "Senior Settlement"). You may be able to take out a home-equity loan or reverse mortgage on your home.
- How To Deal With A Financial Crunch or Crisis.
- New Uses Of Assets
- New Uses Of Assets - Real Estate
- New Uses Of Assets: A Living Benefit From Your Life Insurance Policy
If you do borrow from the plan, the transaction is fairly easy. Read the paper work carefully. If you're borrowing a small amount, keep in mind that even a small fee may equal a large percentage of the amount you want to borrow - plus there's interest to pay.