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Oct
31
With a 401(k) loan, on the other hand, the collateral — your plan balance — already belongs to you. Compared with other loans, getting a 401(k) loan is simple. If you can’t pay back your loan, you’ll be treated as though you’d withdrawn the money from your 401(k) — with all the taxes and penalties that apply. If you’re not sure when or how you’ll ever pay back your loan, borrowing from a 401(k) isn’t the best choice. So if you’re facing a temporary setback and need a short-term solution, a 401(k) loan may not be as bad as some experts think — and a lot better than your alternatives. read more
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