I borrowed 1/2 of what have in my 401k. Now I'm paying it off monthly. is there any way I can stop payment and let them take the other half of what is left in my account?
2006-07-20 21:00:06 · 4 answers · asked by III 2 in Business & Finance ➔ Investing
If you are still working there and paying the loan via payroll deduction you must continue to pay off the loan.
If you are not working there and you stop paying off the loan they will treat that as a withdrawal (because you have the money and are not paying the loan off) so then you have to pay taxes on that plus a penalty if you're not 59 1/2.
Just pay off the loan and keep contributing to your 401(k) too.
And don't take another loan against it.
Treat that money like it's not even yours, like it has already been spent. Take good care of your savings and when you retire it will take good care of you.
2006-07-20 22:07:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you're still employed with the company you will have to continue to make the loan payments. I highly recommend making the loan payments and not borrowing against your future funds.
Good luck!
2006-07-21 08:53:12 · answer #2 · answered by Adios 5 · 0⤊ 0⤋
You're going to be really mad at yourself in 20-30 years.
Pay off the loan (if you can). NEVER, EVER, BORROW FROM YOUR 401K!
2006-07-21 08:33:53 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋
Not a good idea. Keep the payment if at ALL possible.
2006-07-21 04:05:52 · answer #4 · answered by Nikki W 3 · 0⤊ 0⤋