Workinonit Farm
Well-known member
Brute 23 said:DCA farm said:As far as the loan goes if i borrow I borrow from my self (401k) that way cows are paid for I only pay myself back and they hold it out of my paycheck so I ain't gotta worry about nothing. If I loose my job the loan pays its self off so I don't loose the job and the cows
If you lose your job or change employers, your entire 401(k) loan balance is due within 60 days. If you can't repay it, the IRS and your state treat the funds as a withdrawal. You will owe all federal and state income taxes on it, plus an additional 10 percent penalty tax if you are under the age of 59.5 years old.
Copied that word for word. 401K loans are extremely risky. Much better off at your bank.
What Brute has posted, is correct. Borrowing against one's 401K can be more costly than a standard bank loan.