I've tried to do some google searches, but I haven't gotten anything very useful. I'm not even too sure what to search for specifically. I'm curious how it works when you borrow against a 401k.
What I've heard is that all Interest paid is just paid back to yourself. If that's true, it sounds like it would always make sense to take a loan against your 401k instead of from a bank if you have enough. Is this really the case?
So what I don't understand or know of is.. Are there any penalties? Does it effect your credit in any way? How are loan rates and periods usually decided? Like my last car loan was spread out monthly over a 6 year period, would I be likely to do the same against my own 401k?
I've also heard that you can only borrow against the money you put in yourself and not the employer contribution, is that true?
In addition to my 401k, I also have a 403b and 401a now that I work at a university. Do those fall under the same kinds of rules? I'm really curious how this would work. I'm not planning to take any loans on anything right now, but I am definitely curious for the future.
Thanks for the help and advice!
Submitted September 19, 2018 at 08:53AM by john-dev https://ift.tt/2NqXMv0
