Financial Advise???

croatan · 06-04-2009, 11:18 AM

To avoid an early withdrawal penalty, you can borrow from your 401k. Usually a small fee involved (around $100) and you can borrow up to half the balance of the 401k or $50k, whichever is less. You then pay yourself back from your paychecks (5 years for most loans, 10 years for home loans), plus a relatively low interest rate, which goes right back into your 401k. It's usually a better way to go than taking the withdrawal penalty, I think.

If she only has 6k in there, then this may not be as good of an option as it is for those with more equity. But, again, at least it may be better than the penalty.

If you're fired or leave the company, you have to pay it back sooner, though, or pay the penalty.

***not a financial adviser***

06-04-2009, 11:18 AM	#12
croatan Missing Peter Join Date: Oct 2008 First Name: James Location: la Vuelta Abajo Posts: 3,727 Trading: (6)	Re: Financial Advise??? To avoid an early withdrawal penalty, you can borrow from your 401k. Usually a small fee involved (around $100) and you can borrow up to half the balance of the 401k or $50k, whichever is less. You then pay yourself back from your paychecks (5 years for most loans, 10 years for home loans), plus a relatively low interest rate, which goes right back into your 401k. It's usually a better way to go than taking the withdrawal penalty, I think. If she only has 6k in there, then this may not be as good of an option as it is for those with more equity. But, again, at least it may be better than the penalty. If you're fired or leave the company, you have to pay it back sooner, though, or pay the penalty. *not a financial adviser* __________________ Fumo ergo sum.