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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  |  36 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 29 Comments   |  Flag   |  Jun 25, 2012 from Amesbury, MA
Hogg

Hello.

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Regards.

Flag |  Apr 01, 2017
edward

Dear Sir/Madam,

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Flag |  Apr 10, 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 17 Comments   |  Flag   |  Jun 19, 2012 from Green Bay, WI
Katie

How I Got My Loan From Kendrick Investments Limited

My names is Katie Dorrell from Denver Colorado, USA. Am a married woman at the moment with two kids and i was stuck in a financial situation in February 2017 and i needed to refinance and pay my bills for my son schools bills. I tried seeking loans from various loan firms both private and corporate but never with success,and most banks declined my credit. But as God would have it, i was introduced to Kendrick Investments Limited a Private limited Company with Share Capital by a friend, and I got a loan sum of $150,000.00USD on the 7th of March 2017 and today am a business owner and my kids are doing well... So i want to advice any one in need of a loan to quickly contact him via email on :kendrickinvestmentslimited@outlook.com he does not know i'm doing this but I pray that God will bless him for the good things he has done in my life.

EMAIL VIA:kendrickinvestmentslimited@outlook.com
Contact:+13862022899

Flag |  Mar 31, 2017
edward

Dear Sir / Madam,

Do you need a loan? Contact us today for same day approval; Blacklisted welcome. See contact details below send a mail we will contact you immediately. Send us a mail to E-mail
edwardhenry104@gmail.com

Regards
Edward Henry
Director
Capital Finance
Office: +1 (424)-224-9584

Flag |  Apr 10, 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 31 Comments   |  Flag   |  Jun 19, 2012 from Lititz, PA
Katie

How I Got My Loan From Kendrick Investments Limited

My names is Katie Dorrell from Denver Colorado, USA. Am a married woman at the moment with two kids and i was stuck in a financial situation in February 2017 and i needed to refinance and pay my bills for my son schools bills. I tried seeking loans from various loan firms both private and corporate but never with success,and most banks declined my credit. But as God would have it, i was introduced to Kendrick Investments Limited a Private limited Company with Share Capital by a friend, and I got a loan sum of $150,000.00USD on the 7th of March 2017 and today am a business owner and my kids are doing well... So i want to advice any one in need of a loan to quickly contact him via email on :kendrickinvestmentslimited@outlook.com he does not know i'm doing this but I pray that God will bless him for the good things he has done in my life.

EMAIL VIA:kendrickinvestmentslimited@outlook.com
Contact:+13862022899

Flag |  Mar 31, 2017
Anthony

Do you need funds to start up your own business? Do you need loan to settle your debt or pay off your bills or start a
nice business? Do you need funds to finance your project? We Offers guaranteed loan services of any amount and to any part of the world for (Individuals, Companies, Realtor and Corporate Bodies) interest rate of 3% within 1 to 50 years repayment duration period to any part of the world. We give out loans within the range of $1,000 to $100,000,000 USD.
Our loans are well insured for maximum security is our priority.Kindly contact us via Email

Email:atlantic.investment101@gmail.com

Kind Regard
Anthony Bill
Email: atlantic.investment101@gmail.com
Atlantic Finance

Flag |  2 days ago

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