Benefits 401k loan

[Peachyypie]

Hi team members...I applied for a 401k general purpose loan and asked that it be electronically deposited...anyone know how long that takes to get processed and funds in my account?

 

[Hardlinesmaster]

I have, you pay $75 fee+interest. I did it online on the target pay and benefits website. The amount depends on how much you’ve saved up, usually you can borrow up-to 1/2 of your savings. It can take up to 7 days to process, you either choose direct deposit or they can send a check. The repayments are spread out , you pay x amount back every pay cycle. Or you can pay it all back at once if you choose.Once you receive the loan you cannot take out more loans until the current one is paid off. The process is fairly simple.
Most financial advisors recommended against borrowing money from 401k, because some people are unable to repay the loan and you actually pay interest instead of earning it.
I had borrowed a small small amount and paid it back in a few months. I barely noticed the small deduction every pay cycle.
I hope you make it out of your slump, stronger. Just hang in there.
Thanks
@Planosss

 

[Anelmi]

It takes longer than you might expect. I thought it would be within a day or two. It turned out to be closer to a week.

 

[Kaitii]

it took me a few days to receive mine

i agree w the financial advisors and not borrowing lol

i took $4k out but felt like i had no choice given a sudden $8k debt. but now im stuck at spot until its paid off. if you quit ur job b4 its paid off you have to pay it back all at once....which i cant afford to do.

 

[Zxy123456]

It usually doesn't take longer than a week. But if you have any problems with the money in your bank account, you can contact the bank's support.

This thread is 2 years old LOL. I’m sure they got the money by now.

 

[jackandcat]

This thread should be a sticky and combined with other threads about the Target 401k. The same questions keep coming up over and over. It's an important topic but keeping them in one thread will make it easier for someone to get the info they need.