Can you loan your 401?

[IVE GOTTA PACKAGE 4U]

Damn your given him the friend discount!!!1lol

I didnt specify how big!

 

[upsbeernut]

You owe me 2 beers,for my advice.

I would be happy to. That was worth two beers.

 

[UpstateNYUPSer(Ret)]

if you want the right answer, call the 401k people and ask them.

...or simply go to www.retirement.prudential.com and read the plan rules....

Loans are limited to education, down payment on a new home, foreclosure and medical emergencies. You need to download and complete a loan application and provide supporting documentation. You can repay in as little as 6 months or as long as 5 years. You can have no more than 2 loans at the same time. I took out a total of 8 loans to pay for my share of our children's college. Each of the loans was repaid within a year and all were paid off by the time they graduated. Keep in mind that your 401k balance is reduced by the amount of the loan(s) and you will lose any profits you may have made on that money during that time. You repay the loans with pre-tax money. One of the main selling points of a 401k is the compounding feature.

Your 401k is designed to be a long term investment, not a piggy bank.

 

[Brownslave688]

Even if I knew how you could do it I wouldn't tell you.

I'd foreclose on the house first.

 

[Benben]

That is very bad advice Brown...IMO!

You can borrow against the 401K to purchase a primary residence not pay off a home equity loan unless you can prove to them its an emergency. Use it for the down payment and let the title company deal with the proceeds on the sale of your existing home minus the liens against it.