Are there benefits with IRA over 401k.Would it be wise to use 401 loan to fund IRA loan and payment are pretax

Answer 1

Some employers will match a portion of your 401K savings. Y ou can't do that with an IRA

Answer 2

No, no, no. Also, no. The only benefit I can think of for an IRA over a 401k is that you have easier access to the money under 59 1/2. For instance, you can take money out for college or a first home. Or you can take it out for any reason if you pay a 10% penalty. Borrowing against a 401k is usually a really bad idea and should be reserved only for very dire cirsumstances. And even then, you'd probably be better off selling a kidney first.

Answer 3

You'd only lose money doing that. The money probably wouldn't grow any faster in your IRA than in your 401k, and then you'd pay interest on the loan.

If this is a 401k from a previous employer, you could roll the whole thing into an IRA.

Answer 4

No! No! No! Let's me tell you why you shouldn't do that. First reason, you paid double taxes. Second reasons, when you left your job for whatever that is, you better come with the money to pay in full. It is better to leave the money in 401k.

I can only think of one advantage that IRA has over 401k. You have more options to invest, like more funds, and you can own an individual stock. Some 401k plan will not allow employees to own stock, you can only chose the funds within the plan.