The common wisdom is that 401k loans come due after you quit or get fired from your job. In my case, the plan administrator allowed me to continue to make my monthly payments and that will not trigger a forced withdrawal if I could not pay in full.
My story was I took a calculated risk and it did not go the way I had planned. I had to borrow from my 401k to repay my risk. I had been trying to find a company with better QoL and it took 18 months while I picked 24 months loan term. We saved any extra money in anticipation of my separation if a better opportunity came. I could’ve repay my loan in full but chose the monthly option to keep my liquidity.
Now it might not have been the correct answer to use 401k loan but that’s a different topic.
Submitted November 26, 2020 at 07:20PM by AspiringFI https://ift.tt/36bqkk5
