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I already have an existing loan from my 401k plan,I need cash but can I still get money out of my account?

Jun 18, 2012 by lorena from Brownsville, TX in  |  Flag
3 Answers  |  74 Followers
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4 votes

While your plan offers you the option to borrow, you need to be aware of any restrictions put in place by the plan administrator. Such information may be found on the administrator website or in the plan's summary document available from the administrator or possibly your HR representative.

Generally, if the plan allows loans, the rule is you can borrow up to 50% of your vested balance to a maximum of $50,000 IF you had no other plan loan in place in the 12 month period ending on the day you apply for the loan.

In your case where you have a plan loan outstanding, then the new loan is limited. It is the lesser of 50% of the vested account balance or $50,000 minus the outstanding loan balance in the preceding 12 months.

In addition to the minimum loan amount noted previously, your plan administrator may restrict the reason for the loan to a list of approved reasons (for example, uninsured medical expenses, college tuition, purchase of a primary residence).

Just because you can get a loan from your 401k doesn't mean that you should. Sure, it is convenient, fast and relatively inexpensive. Yes, you are "paying yourself" for the borrowed money and not a credit card company or bank. Yes, the interest is tax-sheltered and there is no tax consequence for receiving funds as long as you pay it back.

But if you are nearing retirement, may be changing jobs or are facing a lay-off in the near future, need the proceeds for meeting daily living expenses (as opposed to some extraordinary or large capital expense) or are using your 401k like a piggy bank to buy luxury items or pay for a vacation, then the answer is simple: Don't do it.

View all 77 Comments   |  Flag   |  Jun 25, 2012 from Amesbury, MA
Ketesha

How i got my Desired Loan Amount from a Reliable Loan Company (Adolfloancompany@yahoo.com)

Hello everyone, My name is Ketesha Frank, I am from the Alabama, United State, am here to testify of how i got my loan from Mr Adolf Alex Loan Company{ ( Adolfloancompany@yahoo.com) } after i applied Two times from various loan lenders who claimed to be lenders right here this forum, i thought their lending was real and i applied but they never gave me loan until a friend of mine introduce me to Mr Adolf Alex Loan Company, who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I had doubts but i never seize to believe. I never thought there are still reliable loan lenders until i met Mr Adolf Alex, who really helped me with my loan and changed my life for the better. I know there are still many good lenders out there but i would advise you to try Mr Adolf Alex Loan Company, his caring and understanding. don't know if you are in need of an urgent loan also or want funding for your projects, So feel free to contact Mr Adolf Alex Loan Company his email address is ( Adolfloancompany@yahoo.com) or Text: (913) 274-9127

Flag |  2 days ago
Jane

THE BEST PLACE TO SOLVE YOUR FINANCIAL PROBLEMS ( upstartloan@yahoo.com )

Hello everyone in this forum, I am Jane Robin from palm Harbor Florida 34682. USA and want to use this medium to express gratitude to UP START LOAN for fulfilling their promise by granting me a loan, i was stuck in a financial situation and needed to refinance and pay my bills as well as start up a Business. I tried seeking for loans from various loan firms both private and corporate organisations but never with success, and most banks declined my credit request. But as God would have it, i was introduced by a friend named Mary Williams to UP START LOAN whom also confirmed to me that she also obtained a loan from them. In an attempt to resolve my current situation, i got in contact with the company via email and undergone the due process of obtaining a loan from the company, to my greatest surprise within 48hrs just like my friend Mary, i was also granted a loan of $80,000.00; So my advise to everyone who or know someone who desires a loan, if you must contact any firm with reference to securing a loan online with low interest rate of 2% and better repayment plans/schedule, please contact UP START LOAN. Besides, he doesn’t know that am doing this but due to the joy in me, i'm so happy and wish to let people know more about this great company whom truly give out loans, it is my prayer that GOD should bless them more as they put smiles on peoples faces. You can contact them via email on ( upstartloan@yahoo.com ) or Text/Call +1(574) 301-1639

Flag |  23 hours ago

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3 votes

By regulation you can borrow up to $50,000 or 50% of your current account value which ever is less. You will need to contact your plan administrator to determine if your plan allows it.

View all 56 Comments   |  Flag   |  Jun 19, 2012 from Green Bay, WI
Ketesha

How i got my Desired Loan Amount from a Reliable Loan Company (Adolfloancompany@yahoo.com)

Hello everyone, My name is Ketesha Frank, I am from the Alabama, United State, am here to testify of how i got my loan from Mr Adolf Alex Loan Company{ ( Adolfloancompany@yahoo.com) } after i applied Two times from various loan lenders who claimed to be lenders right here this forum, i thought their lending was real and i applied but they never gave me loan until a friend of mine introduce me to Mr Adolf Alex Loan Company, who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I had doubts but i never seize to believe. I never thought there are still reliable loan lenders until i met Mr Adolf Alex, who really helped me with my loan and changed my life for the better. I know there are still many good lenders out there but i would advise you to try Mr Adolf Alex Loan Company, his caring and understanding. don't know if you are in need of an urgent loan also or want funding for your projects, So feel free to contact Mr Adolf Alex Loan Company his email address is ( Adolfloancompany@yahoo.com) or Text: (913) 274-9127

Flag |  2 days ago
Jane

THE BEST PLACE TO SOLVE YOUR FINANCIAL PROBLEMS ( upstartloan@yahoo.com )

Hello everyone in this forum, I am Jane Robin from palm Harbor Florida 34682. USA and want to use this medium to express gratitude to UP START LOAN for fulfilling their promise by granting me a loan, i was stuck in a financial situation and needed to refinance and pay my bills as well as start up a Business. I tried seeking for loans from various loan firms both private and corporate organisations but never with success, and most banks declined my credit request. But as God would have it, i was introduced by a friend named Mary Williams to UP START LOAN whom also confirmed to me that she also obtained a loan from them. In an attempt to resolve my current situation, i got in contact with the company via email and undergone the due process of obtaining a loan from the company, to my greatest surprise within 48hrs just like my friend Mary, i was also granted a loan of $80,000.00; So my advise to everyone who or know someone who desires a loan, if you must contact any firm with reference to securing a loan online with low interest rate of 2% and better repayment plans/schedule, please contact UP START LOAN. Besides, he doesn’t know that am doing this but due to the joy in me, i'm so happy and wish to let people know more about this great company whom truly give out loans, it is my prayer that GOD should bless them more as they put smiles on peoples faces. You can contact them via email on ( upstartloan@yahoo.com ) or Text/Call +1(574) 301-1639

Flag |  23 hours ago

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1 vote

Some plans may offer more than one loan at a time, and usually a loan minimum of $1000.00 As Tony mentioned, your plan administrator will be able to guide through this process.

View all 75 Comments   |  Flag   |  Jun 19, 2012 from Lititz, PA
Ketesha

How i got my Desired Loan Amount from a Reliable Loan Company (Adolfloancompany@yahoo.com)

Hello everyone, My name is Ketesha Frank, I am from the Alabama, United State, am here to testify of how i got my loan from Mr Adolf Alex Loan Company{ ( Adolfloancompany@yahoo.com) } after i applied Two times from various loan lenders who claimed to be lenders right here this forum, i thought their lending was real and i applied but they never gave me loan until a friend of mine introduce me to Mr Adolf Alex Loan Company, who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I had doubts but i never seize to believe. I never thought there are still reliable loan lenders until i met Mr Adolf Alex, who really helped me with my loan and changed my life for the better. I know there are still many good lenders out there but i would advise you to try Mr Adolf Alex Loan Company, his caring and understanding. don't know if you are in need of an urgent loan also or want funding for your projects, So feel free to contact Mr Adolf Alex Loan Company his email address is ( Adolfloancompany@yahoo.com) or Text: (913) 274-9127

Flag |  2 days ago
Jane

THE BEST PLACE TO SOLVE YOUR FINANCIAL PROBLEMS ( upstartloan@yahoo.com )

Hello everyone in this forum, I am Jane Robin from palm Harbor Florida 34682. USA and want to use this medium to express gratitude to UP START LOAN for fulfilling their promise by granting me a loan, i was stuck in a financial situation and needed to refinance and pay my bills as well as start up a Business. I tried seeking for loans from various loan firms both private and corporate organisations but never with success, and most banks declined my credit request. But as God would have it, i was introduced by a friend named Mary Williams to UP START LOAN whom also confirmed to me that she also obtained a loan from them. In an attempt to resolve my current situation, i got in contact with the company via email and undergone the due process of obtaining a loan from the company, to my greatest surprise within 48hrs just like my friend Mary, i was also granted a loan of $80,000.00; So my advise to everyone who or know someone who desires a loan, if you must contact any firm with reference to securing a loan online with low interest rate of 2% and better repayment plans/schedule, please contact UP START LOAN. Besides, he doesn’t know that am doing this but due to the joy in me, i'm so happy and wish to let people know more about this great company whom truly give out loans, it is my prayer that GOD should bless them more as they put smiles on peoples faces. You can contact them via email on ( upstartloan@yahoo.com ) or Text/Call +1(574) 301-1639

Flag |  23 hours ago

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