Loan with 401k

[pinkp2ie]

Has anyone done the loan process with your own 401k? I've ran into some problems in life, and hoping someone has a good experience. Thank you!

 

[Planosss]

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.

 

[TTB]

How do you pay the $75 do they just deduct it from the amount or do you actually have to pay them using a card or something. I may have to do this also for a small small amount that 75 seems hefty.

 

[can't touch this]

>paying a fee to borrow your own money from yourself

😂

 

[Planosss]

How do you pay the $75 do they just deduct it from the amount or do you actually have to pay them using a card or something. I may have to do this also for a small small amount that 75 seems hefty.

Its added to the loan, so lets say you borrow 500 it would show up as 575

 

[jackandcat]

>paying a fee to borrow your own money from yourself 😂

Good reason to not do it. Moreover, if for some reason your family ends up in bankruptcy, the money in your 401(k) is basically immune from garnishment or whatever they call it. Other money or valuables you have might be up for grabs.