If your company wont let you withdrall early can you still use as collatorall
2006-08-18 12:45:58 · 4 answers · asked by lisarmickey 1 in Business & Finance ➔ Investing
No, your 401k is protected by bankrupcy law, so no one can touch it but you. Use the loan option at your workplace to get as a loan. Maximum allowed by IRS is 50k, but the bad thing if the company downsided, you require to pay it in full in 60 days
2006-08-18 15:11:02 · answer #1 · answered by Hoa N 6 · 0⤊ 0⤋
It wont work as collateral for a loan; however, you should be able to take a loan from the 401K plan as long as you repay it within a certain amount of time. In the event you are separated from your company you only have 60 days to repay it in full or you have the penalties for early withdrawal plus the whopping income tax in April of next year. Depending on your credit history and the amount you need to borrow, you may be better off just applying for a personal loan. If you have a credit union that you can join (check with your local church or through employer) you'll get a better interest rate than at a bank.
2006-08-18 20:30:43 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No but you can usually take out a loan with your 401k plan.
2006-08-18 20:11:29 · answer #3 · answered by ck-cfp 2 · 0⤊ 0⤋
no. banks cannot 'perfect a lien' on a 401k balance, however many 401k plans will lend you money from your own 401k account with a structured repayment plan.
2006-08-18 20:00:54 · answer #4 · answered by one_observation 3 · 0⤊ 0⤋