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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  |  48 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 40 Comments   |  Flag   |  Jun 25, 2012 from Amesbury, MA
Adams

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Email: {legitfirm@gmail.com}

Flag |  May 26, 2017
Robert

Hello My name is Mr Robert I want to thank Mr William for helping me with my loan funds of $170,000.00. If you are interested in a loan please contact him so that he can also help you too his loan do not take long in 24 hours time my loan was in my account anyone that need an urgent and trusted loan should contact him now he is a God sent and a good person his email is.williampaul356@gmail.com I am happy to write this here because there are many peopel out there that need this help too. if you really need help without been delay as I was delay before this is the right loan company to contact without delay: Email: williampaul356@gmail.com And they are located in the European part of the world.

Flag |  May 27, 2017

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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 25 Comments   |  Flag   |  Jun 19, 2012 from Green Bay, WI
Adams

WHITE HORSE LOAN COMPANY HELPED ME OUT OF MY FINANCIAL CRISIS!!

Hello everyone my name is Adams Gunther, am here to testify how i was rescued by Mrs. Petra Hoffmann .I was in need of a loan and i applied from various loan lenders.They asked me to pay some amount of money at different basis but i never got my loan.This was how i lost the sum of $5,390.I was now in debt because i borrowed the money from a friend.One day a friend of mine introduce me to Davis Robinson and told me that the Terms and Conditions are very simple and considerate. He told me how he has helped with loan at several cases without any delay.I was scared and i did not believe him.He told me to trust her,this was how i was introduce to her through his email{legitfirm@gmail.com }.She told me she will offer me the loan that i only need to comply with them.I did as she told me and without any delay,i received my loan as she earlier promise. Am here to tell you that most of the loan lenders on the internet are scammers. If you truly need a genuine loan please meet Mrs. Petra Hoffmann through her email

Email: {legitfirm@gmail.com}

Flag |  May 26, 2017
Robert

Hello My name is Mr Robert I want to thank Mr William for helping me with my loan funds of $170,000.00. If you are interested in a loan please contact him so that he can also help you too his loan do not take long in 24 hours time my loan was in my account anyone that need an urgent and trusted loan should contact him now he is a God sent and a good person his email is.williampaul356@gmail.com I am happy to write this here because there are many peopel out there that need this help too. if you really need help without been delay as I was delay before this is the right loan company to contact without delay: Email: williampaul356@gmail.com And they are located in the European part of the world.

Flag |  May 27, 2017

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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 45 Comments   |  Flag   |  Jun 19, 2012 from Lititz, PA
Robert

My name is Mr Robert I want to thank Mr William for helping me with my loan funds of $170,000.00. If you are interested in a loan please contact him so that he can also help you too his loan do not take long in 24 hours time my loan was in my account anyone that need an urgent and trusted loan should contact him now he is a God sent and a good person his email is.williampaul356@gmail.com I am happy to write this here because there are many peopel out there that need this help too. if you really need help without been delay as I was delay before this is the right loan company to contact without delay: Email: williampaul356@gmail.com And they are located in the European part of the world.

Flag |  Jun 07, 2017
Robert

My name is Mr Robert I want to thank Mr William for helping me with my loan funds of $170,000.00. If you are interested in a loan please contact him so that he can also help you too his loan do not take long in 24 hours time my loan was in my account anyone that need an urgent and trusted loan should contact him now he is a God sent and a good person his email is.williampaul356@gmail.com I am happy to write this here because there are many peopel out there that need this help too. if you really need help without been delay as I was delay before this is the right loan company to contact without delay: Email: williampaul356@gmail.com And they are located in the European part of the world.

Flag |  Jun 07, 2017

1|600 characters needed characters left