Sources For Getting A Loan
Borrow From Your Retirement Funds
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Most employers will allow loans from a 401(k) or other retirement plan. Borrowing is relatively easy. Generally you can borrow up to 50% of the money that is vested (belong to you) in the plan, up to a maximum of $50,000. Interest rates are usually reasonable.
On the downside:
- You put your retirement at risk.
- Interest is generally not deductible from your taxes
- The loan must be repaid in 5 years or less
- If you lose your job, the loan usually becomes due immediately.
To access the money, ask the benefits department for the forms.
For more information, see: Borrowing Moneyt From A 401K, TSA Or Other Defined Contribution Retirement Plan
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