O'Reilly logo

The Complete Idiot's Guide® To Protecting Your 401(k) and IRA by Bill Lane, Jennifer Lane

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Borrowing Your Own Money

Some employers, who may or may not allow hardship withdrawals, will let you borrow money from your plan at work. These loans have limitations, but because the amount you borrow can be replaced, taking a temporary loan may be a better idea than a hardship withdrawal.

Loans

Most plans will let you borrow up to half your account balance—only the vested part, of course—up to $50,000. Loans are usually paid back over five years, except if you’re borrowing for a home, in which case the loan term might be longer. As with any other loan, you have to make regular payments and pay interest. Payments are withheld from your paycheck, so you need to be ready for the reduced take-home pay. The interest rate is set by the plan, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required