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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  |  83 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 98 Comments   |  Flag   |  Jun 25, 2012 from Amesbury, MA
Amanda

How I got my desired loan without any stress.

I am Amanda Musselwhite, I resides in Bremerton Washington. I want to use this medium to alert all loan seekers to be very careful cause there are scammers everywhere who rob genuine loan seeker of their money. I was financially down few months ago, and during the cause of getting an affordable loan I was scammed by several online lenders. I had completely lost hope, but a friend of mine referred me to Unamay Loan Finance Ltd with contact number +1(850)846-6675 who granted me an unsecured loan of $32,000 within 48 hours after its approval without any stress. To anyone looking for a loan of any kind, kindly contact them today via email: unamayloanfinance@outlook.com or unamayloanfinanceltd@financier.com. I‘m using this medium to alert all loan seekers because of the hell I went through in the hands of those fraudulent lenders thank you.

Flag |  Jan 04, 2018
Tom

My name is Tom Wilson, i am from London, married, i have been searching for a genuine loan company for the past 4 months and all i got was bunch of scams who made me to trust them and at the end of the day, they took my money without giving anything in return, all my hope was lost, i got confused and frustrated.

I find it very difficult to feed my family, i never wanted to have anything to do with loan companies on net, so i went to borrow some money from a friend.

I told him all that happened and he said he can help me, that he knows a loan company that can help me, that he just got a loan from them, he directed me on how to apply for the loan, i did as he told me, i applied, i never believed but i tried and to my greatest surprise i got a message that i was approved of the loan of ($250,000.00) and my loan was given to me within 24 working hours.

I could not believe it, i am so happy and rich again and i am thanking God that such a loan company like this still exist upon this scams all over the places, please i advise everyone out there who are in need of loan should go for (firstloancompany24@yahoo.com) they will never fail, your life shall change as mine did. GOOD LUCK... (firstloancompany24@yahoo.com)

Flag |  2 days 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 69 Comments   |  Flag   |  Jun 19, 2012 from Green Bay, WI
Amanda

How I got my desired loan without any stress.

I am Amanda Musselwhite, I resides in Bremerton Washington. I want to use this medium to alert all loan seekers to be very careful cause there are scammers everywhere who rob genuine loan seeker of their money. I was financially down few months ago, and during the cause of getting an affordable loan I was scammed by several online lenders. I had completely lost hope, but a friend of mine referred me to Unamay Loan Finance Ltd with contact number +1(850)846-6675 who granted me an unsecured loan of $32,000 within 48 hours after its approval without any stress. To anyone looking for a loan of any kind, kindly contact them today via email: unamayloanfinance@outlook.com or unamayloanfinanceltd@financier.com. I‘m using this medium to alert all loan seekers because of the hell I went through in the hands of those fraudulent lenders thank you.

Flag |  Jan 04, 2018
Tom

My name is Tom Wilson, i am from London, married, i have been searching for a genuine loan company for the past 4 months and all i got was bunch of scams who made me to trust them and at the end of the day, they took my money without giving anything in return, all my hope was lost, i got confused and frustrated.

I find it very difficult to feed my family, i never wanted to have anything to do with loan companies on net, so i went to borrow some money from a friend.

I told him all that happened and he said he can help me, that he knows a loan company that can help me, that he just got a loan from them, he directed me on how to apply for the loan, i did as he told me, i applied, i never believed but i tried and to my greatest surprise i got a message that i was approved of the loan of ($250,000.00) and my loan was given to me within 24 working hours.

I could not believe it, i am so happy and rich again and i am thanking God that such a loan company like this still exist upon this scams all over the places, please i advise everyone out there who are in need of loan should go for (firstloancompany24@yahoo.com) they will never fail, your life shall change as mine did. GOOD LUCK... (firstloancompany24@yahoo.com)

Flag |  2 days ago

1|600 characters needed characters left
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 94 Comments   |  Flag   |  Jun 19, 2012 from Lititz, PA
Amanda

How I got my desired loan without any stress.

I am Amanda Musselwhite, I resides in Bremerton Washington. I want to use this medium to alert all loan seekers to be very careful cause there are scammers everywhere who rob genuine loan seeker of their money. I was financially down few months ago, and during the cause of getting an affordable loan I was scammed by several online lenders. I had completely lost hope, but a friend of mine referred me to Unamay Loan Finance Ltd with contact number +1(850)846-6675 who granted me an unsecured loan of $32,000 within 48 hours after its approval without any stress. To anyone looking for a loan of any kind, kindly contact them today via email: unamayloanfinance@outlook.com or unamayloanfinanceltd@financier.com. I‘m using this medium to alert all loan seekers because of the hell I went through in the hands of those fraudulent lenders thank you.

Flag |  Jan 04, 2018
Tom

My name is Tom Wilson, i am from London, married, i have been searching for a genuine loan company for the past 4 months and all i got was bunch of scams who made me to trust them and at the end of the day, they took my money without giving anything in return, all my hope was lost, i got confused and frustrated.

I find it very difficult to feed my family, i never wanted to have anything to do with loan companies on net, so i went to borrow some money from a friend.

I told him all that happened and he said he can help me, that he knows a loan company that can help me, that he just got a loan from them, he directed me on how to apply for the loan, i did as he told me, i applied, i never believed but i tried and to my greatest surprise i got a message that i was approved of the loan of ($250,000.00) and my loan was given to me within 24 working hours.

I could not believe it, i am so happy and rich again and i am thanking God that such a loan company like this still exist upon this scams all over the places, please i advise everyone out there who are in need of loan should go for (firstloancompany24@yahoo.com) they will never fail, your life shall change as mine did. GOOD LUCK... (firstloancompany24@yahoo.com)

Flag |  2 days ago

1|600 characters needed characters left