Lo@n tesukovachaa 401k amount medha

[karna11]

House buying down payment ki 401k amount medha loan tesukovachaaa? If yes 

Please throw pros &cons? And process also.

 

[Kumaravaarma]

ask duryodhana

[Dhevudu2]

Yes you can but you will be missing the compound interest that you are gaining on 401K

[camsam]

Yes, you can. I took it twice. I had to pay loan set up fee, that's all

[Deadp0ol2]

12 minutes ago, karna11 said:

House buying down payment ki 401k amount medha loan tesukovachaaa? If yes 

Please throw pros &cons? And process also.

 

senior citizen vi emo...down payment oka 80K untadi katteyyi daaniki em loan teeskuntav

 

 

[ravana]

14 minutes ago, karna11 said:

House buying down payment ki 401k amount medha loan tesukovachaaa? If yes 

Please throw pros &cons? And process also.

 

yes you can take if there is no other 401K loan active in your account.

pros: down ki money, not much paper work is needed if you take from 401k

cons: if market is growing more than the percentage of interest that you are paying to your 401K loan then you are losing that money

[Kootami]

4 minutes ago, karna11 said:

House buying down payment ki 401k amount medha loan tesukovachaaa? If yes 

Please throw pros &cons? And process also.

 

teeskovachu but . u will be losing compounding benifit

[k2s]

30 minutes ago, karna11 said:

House buying down payment ki 401k amount medha loan tesukovachaaa? If yes 

Please throw pros &cons? And process also.

 

House docs chupistey 15yrs ki istaru, leda personal 5yrs ki. Max $50k or 50% of your 401k amount. Whichever is lowest. 
apr around 4-6% untundi, which you pay to ur own 401k. Job vadilesthey fine kattali as if you withdraw money against 401k

[kothavani]

33 minutes ago, k2s said:

House docs chupistey 15yrs ki istaru, leda personal 5yrs ki. Max $50k or 50% of your 401k amount. Whichever is lowest. 
apr around 4-6% untundi, which you pay to ur own 401k. Job vadilesthey fine kattali as if you withdraw money against 401k

Plus one

Depends on plan my earlier company nenu vodilesa they are continuing the loan no plan closing or fine etc

[LadiesTailor]

34 minutes ago, k2s said:

House docs chupistey 15yrs ki istaru, leda personal 5yrs ki. Max $50k or 50% of your 401k amount. Whichever is lowest. 
apr around 4-6% untundi, which you pay to ur own 401k. Job vadilesthey fine kattali as if you withdraw money against 401k

Job anedi company ni batti vuntundi... some companies ask you to pay off or taxable if you leave the job... some have option to continue paying your 401k after leaving the job also..

[kothavani]

1 minute ago, LadiesTailor said:

Job anedi company ni batti vuntundi... some companies ask you to pay off or taxable if you leave the job... some have option to continue paying your 401k after leaving the job also..

You mean plan kada

[LadiesTailor]

Just now, kothavani said:

You mean plan kada

Yes 401k plan..thx for correcting bro 

[edookatiivvuranayana]

Biggest con is: if you switch job, you have around 90 days to pay off the loan, depends on co.pany, but time limit is for sure there, I've been through this hell.

 

[karna11]

4 hours ago, Kootami said:

teeskovachu but . u will be losing compounding benifit

What is compounding benefit? Can u explain

[lovemystate]

24 minutes ago, karna11 said:

What is compounding benefit? Can u explain

If you borrow 100k from your 401k and if your 401k grew by 10 percent this year then you lost 10k. You don’t have to worry about interest you pay to 401k as you are paying it to yourself.

basically your “interest” rate on 401k loan is the gains you missed out on stock growth rate.

but such “logic” can be applied anywhere. Say you pay your house deposit from your savings instead of 401k  then you are losing any investment Returns you could have got By investing those savings I n market. So not a very strong argument to me.

but think through it.

Also check if annual 401k contribution is counted toward the loan . If not then you are basically paying pre tax 401k savings with post tax money. But again 401k earnings are taxable when you retrieve them. So it gets a bit complicated there . You need to apply your special circumstances to decide.