Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about 401k and other Retirement Planning topics.
Many people often wonder if they can take money out of their 401k plan. The answer is emphatically, yes. Many 401k plans offer loans, however some 401k plans have limitations on the reasons for the loan. If your 401k plan is through your employer, you will need to contact your human resource department for information regarding your 401k plan and the loan requirements. Typically, you will take a loan out and then repay the money back with interest. You can even continue to accrue money in your 401k plan. Taking out a loan on your 401k plan offers some benefits. For instance, you don't have to worry about your credit rating to qualify for the loan. There may be some restrictions involving payments and the amount of time you have to repay the loan.
|Jennifer Mathes, Ph.D.|