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Originally Posted by Jenn218  So.....you are not penalized for borrowing from your 401k? For some reason, I thought you were.....I haven't looked into it. What is the criteria for paying it back...how long do you have, interest, etc. I would love to hear about it. |
There is no penalty and you can take up to five years to pay it back an it's broken into nice even payments. The payment has to be deducted bi-weekly. With my job I can only take up to 50% out. If I have to or choose to take more I can but I will get suspended from the plan for 6 months.
You also have the option to take money from the plan and pay the taxes immediately or later at tax time. The thing with this one is there is no payments and you just literally took out a chunk of money.