I just went straight to my 401k and borrowed- I didn’t go through my employee- first time I ever done this after 25 years with the company - so I have no idea what to expect
Yes, you can generally repay a loan early. However, the logistics and options vary from plan to plan (depending on your employer and the vendors they use). For example, you might need to pay it off fully in one lump sum, or there might be other restrictions. Your employer or the plan's Administrator can tell you about the specific rules and opportunities for your plan.
It's tough to say, and it would depend on your employer and your plan's administrator. I would contact the administrator and ask what to reasonably expect. Then add at least a few days (more if they are disorganized).
I'm not aware that you need to proactively report regularly scheduled loan repayments via payroll on your tax return, but I could be missing something. To be sure, please triple-check with a tax professional who knows all of the details of your situation. If you leave your job with an outstanding loan balance, the employer calls it a distribution, and you do an offset payment to an IRA (if allowed), that may be a different story.
When paying the loans, are we using the after tax money to contribute to a pre-tax 401k account? which means eventually the ' Earnings' will be taxed again?
So if i have 900,000 in my 401 and I take out a 30,000 loan. I still have 870,000 working towards my retirement. I just may do this. I would like to use my money a little before I die.
I took a 10k loan, repayable over 5 years. It felt like a punch to my gut. I hated it, hated the garnishment, hated paying interest on it… It seemed like I was taken to the cleaners the whole time.
So let me get this straight, you can take a 401(k) loan with your current employer but you're future earnings(checks) you get from that employer will be automatically garnished to pay towards your loans. If that's the case, then I don't think it would be a good idea to take some loans to pay for my education when all my future earnings form my employer will just be garnished out. Let me know if i have this right
@@steve410whatever you are already contributing is also still going into it. So for me I have 10% of my check going to my 401k. I had a small loan a few years ago and payed like $60 or something every pay check on top of the 10% I already had set up to go into it
The employer will take the money out to pay the loan back each pay period in increments over the period of the loan (5 years). Depending on the size of the loan you’re taking it shouldn’t be a huge amount. You would have to pay it anyway. This just skips a step by having the payment come straight out of your paycheck.
Can I borrow from my 401k to repay a 401k loan? Let’s say I have a 401k that has over 100k in it and I want to borrow 50k. Let’s say I do borrow 50k from the 401k and I have 5 years to repay it but in year 4 I have only repaid 30k. Can I take out a 20k loan from the 401k to pay off the 20k that I owe to the 401k.
Thank you! Explained so clearly!
Thank you for such informative video with all important things to know 👌
Times is tough I am here thanks for the info
Great explanation thank you!
Very informative 👏 great video!!!!
Very informative
Very nice info thanks
great and informative 👍🏽
Solid video!
Sounds like a great time to take a 401k loan
Thanks!
Thank you
Thank you!
There's no option to keep paying if i change jobs
I just went straight to my 401k and borrowed- I didn’t go through my employee- first time I ever done this after 25 years with the company - so I have no idea what to expect
How has it gone brother ?
Can I repay the loan quicker? Or do I need to pay it on the stablished repayment period?
Yes, you can generally repay a loan early. However, the logistics and options vary from plan to plan (depending on your employer and the vendors they use). For example, you might need to pay it off fully in one lump sum, or there might be other restrictions. Your employer or the plan's Administrator can tell you about the specific rules and opportunities for your plan.
Hi. What if I pay off a loan how long would it take to get another loan?
It's tough to say, and it would depend on your employer and your plan's administrator. I would contact the administrator and ask what to reasonably expect. Then add at least a few days (more if they are disorganized).
I got 5800 only want to take 400
So if your into year 1 of your repayment and it’s tax season, would have to provide your loan information on your taxes?
I'm not aware that you need to proactively report regularly scheduled loan repayments via payroll on your tax return, but I could be missing something. To be sure, please triple-check with a tax professional who knows all of the details of your situation.
If you leave your job with an outstanding loan balance, the employer calls it a distribution, and you do an offset payment to an IRA (if allowed), that may be a different story.
When paying the loans, are we using the after tax money to contribute to a pre-tax 401k account? which means eventually the ' Earnings' will be taxed again?
no not again only once
So if i have 900,000 in my 401 and I take out a 30,000 loan. I still have 870,000 working towards my retirement. I just may do this. I would like to use my money a little before I die.
Yeah but you still have to pay yourself back. Don't forget that
Doesn't sound like it's worth it
I took a 10k loan, repayable over 5 years. It felt like a punch to my gut. I hated it, hated the garnishment, hated paying interest on it… It seemed like I was taken to the cleaners the whole time.
The interest goes back to you instead of a lender. 401K loans are brilliant if ur smart with money
The interest goes back to your 401k.
You keep the interest
So let me get this straight, you can take a 401(k) loan with your current employer but you're future earnings(checks) you get from that employer will be automatically garnished to pay towards your loans. If that's the case, then I don't think it would be a good idea to take some loans to pay for my education when all my future earnings form my employer will just be garnished out. Let me know if i have this right
My 401k takes like 65 dollars to repay the loan every pay period.
@@hialeahasere5510 besides the 65 towards the loan, is there any remaining money that goes into the account?
@@steve410whatever you are already contributing is also still going into it. So for me I have 10% of my check going to my 401k. I had a small loan a few years ago and payed like $60 or something every pay check on top of the 10% I already had set up to go into it
The employer will take the money out to pay the loan back each pay period in increments over the period of the loan (5 years). Depending on the size of the loan you’re taking it shouldn’t be a huge amount. You would have to pay it anyway. This just skips a step by having the payment come straight out of your paycheck.
It’s a good idea to take out the loan with your 401k since the interest you’re paying from it goes back to your 401k
Can I borrow from my 401k to repay a 401k loan? Let’s say I have a 401k that has over 100k in it and I want to borrow 50k. Let’s say I do borrow 50k from the 401k and I have 5 years to repay it but in year 4 I have only repaid 30k. Can I take out a 20k loan from the 401k to pay off the 20k that I owe to the 401k.