No announcement yet.

401K Loans for Emergencies

  • Filter
  • Time
  • Show
Clear All
new posts

  • 401K Loans for Emergencies

    Retirement accounts are set up to allow people to save for retirement. Funds in these accounts are intended to not be touched until retirement. However the IRS has allowed for a few emergency instances in which 401k assets can be used for non-retirement purposes. These include emergencies, first-time home purchases, and a few others.

    How do You Get a 401k Loan?

    Talk to your 401k plan administrator to find out your plan's rules about 401k loans. Most plans will allow you to borrow up to 50% of the value of your loan. You will have to sell some of the securities in your account if you don't have cash sitting in your account. Then you will have a repayment plan. You will pay interest to your account until the loan is paid off.

    What to Watch out for

    Be sure to ask about the rules of repayment. Many 401k loans require you to pay back the balance in full within 30 days of being terminated from employment. So be prepared if you think you could resign or get laid off. Also, be aware that even though you pay interest to yourself, it is not always a great idea. When you take out a 401k loan you give up the opportunity for your investments to grow during the loan time.

    Use only for Emergencies

    A 401k loan can be a good source of emergency funds, but it should be used only in very dire circumstances. 401k assets should be used very carefully. It is best to have a separate emergency savings fund to cover unplanned family or personal emergencies.

    Article Source:
    Platinum Swing Trade Stock Alerts(FREE 14-Day Trial)

    The 10-Buck Broker (Long-Term Stock Picks)

    Best Stock Picking Services

    Sign up for the forum to reply to this post!!!

    Best FOREX Signals Software

    Stock Market Investing For Beginners

    "Step into the arena and hold on to your hat. Don't get discouraged if you don't make 8 trillion dollars in your first month. Trading is not a get rich quick scheme. Realize that trading is a skill and just like any other skill it takes time to learn. Have convictions in your decisions in life and trading. Ignore the comments and "advice" of those that have never traded a day in their life."

    College is here to read more about the college scam!

    Good KARMA and positive energy abound.

    Terms Of Service

    Disclaimer: This website provides information about the stock market and other investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for informational purposes only. The Author of this website is not a registered investment advisor and does not offer investment advice. You, the reader, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.

    Promoted content: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this website and may receive commissions from purchases you make on subsequent websites. Always exercise due diligence before purchasing any product or service. This website contains advertisements.
    Best stocks to buy now Stock Market
    Best stocks to buy now
    Dow Jones TodayDJIA