Can I Borrow Money from my 401k?
- 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.
