Comments on: 401K Loan Rules – Taxes, Interest, Pros and Cons http://www.darwinsfinance.com/401k-loan-rules-tax/#utm_source=rss&utm_medium=rss&utm_campaign=401k-loan-rules-tax Financial Evolution: Education, Adaptation, Achievement Wed, 08 Sep 2010 10:15:31 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: 401(k) Hardship Withdrawals Spike – Rules and Alternativeshttp://www.darwinsfinance.com/401k-loan-rules-tax/comment-page-1/#comment-6666 401(k) Hardship Withdrawals Spike – Rules and Alternatives Sat, 21 Aug 2010 01:45:01 +0000 http://www.darwinsfinance.com/?p=1943#comment-6666 [...] balance, as I highlighted over at Darwin’s Finance, I would actually recommend taking out a 401(k) Loan rather than a flat out withdrawal.  As opposed to paying a 10% tax to the government upon [...] [...] balance, as I highlighted over at Darwin’s Finance, I would actually recommend taking out a 401(k) Loan rather than a flat out withdrawal.  As opposed to paying a 10% tax to the government upon [...]

]]> By: Best Financial Planning and Investment Articles this Week | Personal Investment Management and Financial Planning Blog Directoryhttp://www.darwinsfinance.com/401k-loan-rules-tax/comment-page-1/#comment-4897 Best Financial Planning and Investment Articles this Week | Personal Investment Management and Financial Planning Blog Directory Fri, 19 Mar 2010 06:33:31 +0000 http://www.darwinsfinance.com/?p=1943#comment-4897 [...] presents 401K Loan Rules – Taxes, Interest, Pros and Cons posted at Darwin’s Finance, saying, “401K Loans are misunderstood and misused. This [...] [...] presents 401K Loan Rules – Taxes, Interest, Pros and Cons posted at Darwin’s Finance, saying, “401K Loans are misunderstood and misused. This [...]

]]> By: The Carnival of Money Stories XLV - The Sex, Lies and Videotape Editionhttp://www.darwinsfinance.com/401k-loan-rules-tax/comment-page-1/#comment-4845 The Carnival of Money Stories XLV - The Sex, Lies and Videotape Edition Mon, 15 Mar 2010 13:19:11 +0000 http://www.darwinsfinance.com/?p=1943#comment-4845 [...] presents 401K Loan Rules – Taxes, Interest, Pros and Cons posted at Darwin’s [...] [...] presents 401K Loan Rules – Taxes, Interest, Pros and Cons posted at Darwin’s [...]

]]> By: Evolution Of Wealthhttp://www.darwinsfinance.com/401k-loan-rules-tax/comment-page-1/#comment-4826 Evolution Of Wealth Fri, 12 Mar 2010 20:57:45 +0000 http://www.darwinsfinance.com/?p=1943#comment-4826 Jim has it right when talking about 'double taxation'. If you put it in perspective and compare it to any other loan option you might have you pay the money back with after-tax dollars and you pay the interest with after-tax dollars. So it's the same as any other loan. I sort of agree with how you said it except that the full payment on the 401k loan is with after-tax dollars and not just the interest. But again, if you put it in perspective it's the same.The big thing that I would add is that if you take a 401k loan most 401k not only stop you from contributing but have stipulations that you might not be able to contribute for up to 6 months or a year after the loan has been paid back. This could really make those opportunity costs start adding up. Jim has it right when talking about ‘double taxation’. If you put it in perspective and compare it to any other loan option you might have you pay the money back with after-tax dollars and you pay the interest with after-tax dollars. So it’s the same as any other loan.
I sort of agree with how you said it except that the full payment on the 401k loan is with after-tax dollars and not just the interest. But again, if you put it in perspective it’s the same.

The big thing that I would add is that if you take a 401k loan most 401k not only stop you from contributing but have stipulations that you might not be able to contribute for up to 6 months or a year after the loan has been paid back. This could really make those opportunity costs start adding up.

]]> By: Kathttp://www.darwinsfinance.com/401k-loan-rules-tax/comment-page-1/#comment-4803 Kat Thu, 11 Mar 2010 19:34:53 +0000 http://www.darwinsfinance.com/?p=1943#comment-4803 Thanks for a great explanation. I was just investigating and this is the clearest description I have found of exactly what happens when you repay the loan. Thanks for a great explanation. I was just investigating and this is the clearest description I have found of exactly what happens when you repay the loan.

]]> By: Money Hacks Carnival: Middle Name Pride Day Edition | Mighty Bargain Hunterhttp://www.darwinsfinance.com/401k-loan-rules-tax/comment-page-1/#comment-4762 Money Hacks Carnival: Middle Name Pride Day Edition | Mighty Bargain Hunter Wed, 10 Mar 2010 11:14:58 +0000 http://www.darwinsfinance.com/?p=1943#comment-4762 [...] Finance runs down 401(k) loan rules and discusses the pros and [...] [...] Finance runs down 401(k) loan rules and discusses the pros and [...]

]]> By: Kenhttp://www.darwinsfinance.com/401k-loan-rules-tax/comment-page-1/#comment-4642 Ken Sat, 06 Mar 2010 01:40:43 +0000 http://www.darwinsfinance.com/?p=1943#comment-4642 Let's not forget that if you are terminated from your job a 401K loan repayment in full can be required. Let’s not forget that if you are terminated from your job a 401K loan repayment in full can be required.

]]>