Weighing the Options When It Comes to Borrowing From Your 401(k)

Financial hardships happen, and can be experienced by anyone. Unexpected layoffs, putting kids through school, and the changes caused by COVID-19 to name a few.
Regardless of the reason, when money is needed, there is no shortage of options available for obtaining emergency funds. Borrowing from a retirement fund, specifically a 401(k), is an option many people choose.
You are essentially borrowing money from yourself via your retirement funds, and paying yourself back, as opposed to acquiring a loan from a more traditional source such as a bank. While the process is fairly straightforward, the necessities and reasoning behind it and the potential repercussions should be considered before transferring any money.

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