Home  >  Financial Articles and Q&A  >  I already have an existing loan from my 401k plan,I need...

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  |  131 Followers
Follow Question
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 158 Comments   |  Flag   |  Jun 25, 2012 from Amesbury, MA
Elizabeth

How I already got an Xmas loan

My name is Elizabeth Gindi residing in Brooklyn, I am thankful to Jennard Investments Limited for granting me an Xmas loan on the 27th of November 2019 at 3% interest rate. This thanksgiving and forthcoming Xmas wouldn't have been fun for me and my family if not for Mr Richard James Dyson, who help me and made it fun by granting me a loan on their Xmas loan scheme. I also have been able to expand my business by putting in part of the money I got as loan on it. This message might be of importance to those seeking a genuine loan for Xmas or business purpose. I advise you contact this company via contact number: +1(484)292-4513 & email: jennardinvestmentslimited@outlook.com. Thank you.

Flag |  Dec 13, 2019
Mike

Testimony on how i received my loan at 2% ( Frank Loans Services )

I would without reservation recommend working with Frank Loan Services, If you are in the market for a home mortgage. I have spoke to many brokers while shopping for my mortgage loan online, From the first contact, I could tell he's the type of person I could trust to help me make the best decision for me and my family, They offer both short and long terms loan off within 1-50 years loan duration, with or without collateral but no credit check and their services are fast, Reliable and trustworthy because they have been tested and trusted by me unlike other companies.

Are you finding it hard to obtain capital service from local banks and other financial institutes? do you need funds to start up your personal business? Do you have a low credit score and you are finding it hard to get a loan because of your credit score worry no more because Frank Loans Services is here to help you pay off your bills and start a good business, they offer loans at a very affordable interest rate of 2% interested persons should kindly contact him via E-mail: k.frankloans@gmail.com Mobile: +1-713-389-6778.

Their services include Refinancing Loans, Truck Loans, Education Loans, Student loans, Personal Loans, Car Loans, Debt consolidation loans, Business Loans, secured and unsecured loan, Mortgage Loan, Home Loans, kindly contact them today for further inquiries via E-mail: k.frankloans@gmail.com Mobile: +1-713-389-6778.

Your Financial Satisfaction is there Aim and your working with them will be of a good experience, kindly contact them today for further inquiries if you are interested in loans via his E-mail: k.frankloans@gmail.com Mobile: +1-713-389-6778.

Flag |  Dec 16, 2019

1|600 characters needed characters left
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 119 Comments   |  Flag   |  Jun 19, 2012 from Green Bay, WI
Mike

Testimony on how i received my loan at 2% ( Frank Loans Services )

I would without reservation recommend working with Frank Loan Services, If you are in the market for a home mortgage. I have spoke to many brokers while shopping for my mortgage loan online, From the first contact, I could tell he's the type of person I could trust to help me make the best decision for me and my family, They offer both short and long terms loan off within 1-50 years loan duration, with or without collateral but no credit check and their services are fast, Reliable and trustworthy because they have been tested and trusted by me unlike other companies.

Are you finding it hard to obtain capital service from local banks and other financial institutes? do you need funds to start up your personal business? Do you have a low credit score and you are finding it hard to get a loan because of your credit score worry no more because Frank Loans Services is here to help you pay off your bills and start a good business, they offer loans at a very affordable interest rate of 2% interested persons should kindly contact him via E-mail: k.frankloans@gmail.com Mobile: +1-713-389-6778.

Their services include Refinancing Loans, Truck Loans, Education Loans, Student loans, Personal Loans, Car Loans, Debt consolidation loans, Business Loans, secured and unsecured loan, Mortgage Loan, Home Loans, kindly contact them today for further inquiries via E-mail: k.frankloans@gmail.com Mobile: +1-713-389-6778.

Your Financial Satisfaction is there Aim and your working with them will be of a good experience, kindly contact them today for further inquiries if you are interested in loans via his E-mail: k.frankloans@gmail.com Mobile: +1-713-389-6778.

Flag |  Dec 16, 2019
fred

?????????? ??? ??????? ?????? ??? fredlarryloanfirm@gmail.com

??? ??????? ??????? ?? ?????????????? ?? ?????? ???

???? ????,

????? ?????????????? ? ???????; ???? ????? ? ??? ?? ??????????? ?? ?????? ???, ??????? ?????????????? ??????, ??????????? ?????? ?? ?????? ???????? 3%, ?? ????? ??? ???????????? ?? ??? ??? ?????, ?? ??????????? ??????? ??????, ?????, ???????, ???? ???.

???????? ??? ?????? ??? ??? ??????? ??? ????????? ??????
????????????? ???? ??? ????
Email: (fredlarryloanfirm@gmail.com) ? (fredlarryloanfirm@hotmail.com)
??????? ?????? / ????. ?????????: +2347061892843

Flag |  Jan 28, 2020

1|600 characters needed characters left
2 votes

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 189 Comments   |  Flag   |  Jun 19, 2012 from Lititz, PA