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Ideally, no one would ever need to borrow from their retirement account, but here's when it may or may not make sense.
A lot of Americans today are worried about a recession. It can be tempting to take out a 401(k) loan when you need money. You should know that this could be a very risky means of borrowing.
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While a 401(k) loan might seem like a good way to borrow money, there’s a risk. If you don’t repay that loan on time, it gets treated like a full-fledged 401(k) plan withdrawal.
“There is a corollary to what you are seeing in the U.S. economy with deferred payments on auto loans and mortgages ... this one from the Transamerica Center for Retirement Studies, found ...
While some 401(k), 403(b), and 457(b) plans allow participants to borrow from their accounts, that's not the case for all plans. It's up to the sponsor to determine whether to include loan provisions.
Those who don’t have access to a HELOC or Bridge Loan can consider a 401k loan. Typical 401k plan terms allow the account holder to borrow funds against their balance if they are still an ...
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