Can I Borrow Money from my 401k?
You can borrow money form your 401k, but remember that a 401 loan has to be repaid, even if you're laid off or changing jobs.
Published Nov 20, 2018
Can I Borrow Money from my 401k?
The answer is yes, you can borrow money form your 401k, and taking out a loan rather than simply withdrawing your money is always a better option, since you’ll avoid the 10% early withdraw penalty. Here are few things to keep in mind:
- 401k loan has to be repaid
- If you plan to change jobs, you’ll have to repay the loan before you make the move.
- If you’re laid off you’ll have to pay the entire amount back or you’ll face the early withdraw penalty
Today's tip brought to you by Mvelopes and Money4Life Coaching.
Originally published November 27, 2018.
