Tempted to Borrow From Your 401(k)? 4 Things to Consider Instead
If you find yourself in a financial pinch, you may be tempted to borrow from funds you've steadily tucked away in your employer-sponsored 401(k) plan. 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.The first step is to check with the plan sponsor or the Summary Plan Description to learn whether a loan is possible. The next (and more important) step is to examine other options available to you.Image source: Getty Images.Continue reading
If you find yourself in a financial pinch, you may be tempted to borrow from funds you've steadily tucked away in your employer-sponsored 401(k) plan. 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.
The first step is to check with the plan sponsor or the Summary Plan Description to learn whether a loan is possible. The next (and more important) step is to examine other options available to you.
Image source: Getty Images.
