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Many online resources for financial advice point out that tapping into your 401K plan prematurely should be a last resort option. It might first seem there are many benefits of a 401K loan. After all, you're "borrowing money from yourself", however, once you delve deeper, the costs can far outweigh the benefits. Explore this tab to better understand why borrowing from your retirement fund may be a bad idea. Of course before you follow this or any advice found on the web, you should consult a financial professional.
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401k Loans: Borrowing Your Own Money - This dollar stretcher article is in response to a reader who needs financial advice on taking out a 401K loan to buy a car. This is a great source that explains how to calculate your 401K loan, the risks, and money that can be lost.
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401K Loan Rules – Taxes, Interest, Pros and Cons - Darwin's Finance points out that a 401K loan is essentially borrowing money from yourself. Pros include not having to do a credit check and that it is quite easy to attain. However, there are also several cons that one should consider before taking out this loan.
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401k Loans - This 401kFundAdvice article points out that loans can be offered by employers as part of your 401K plan. This article discusses the pros and cons of taking out a 401K loan.
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Should You Borrow from Your 401k? - Lightship Mutual offers advice on factors to consider before taking out a 401K loan. This source goes over provisions, disadvantages of taking out a 401K loan, and information on "hardship withdrawals".
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More Cons Than Pros To 401(k) Loan - This article suggests that the cons outweigh the pros when it comes to 401K loans. Find out what you are signing up for if you're thinking about taking out a loan from your 401K.
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401k Loan Versus a Home Equity Loan - Many contributors give their advice on this discussion board.
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The Facts About 401k Loans - From CCCS-There are many things to consider before borrowing money against your 401K retirement plan. This article explains the 401K plan and offers advice on things to consider before signing the dotted line.
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401k Plan Loans - An Overview - A 401K loan is a loan taken out of your retirement plan. Though the plans low interest and relatively no hassle application form may be enticing, there are many negative factors to consider before taking this loan.
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401k Loans - This article focuses breaking down some common misconceptions regarding 401K loans. Although the loans may be OK for some people, this article stresses that you should carefully consider some factors that could greatly decrease your 401K payout.