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  • Casual Articles - Why You Should Not Borrow From Your 401(k) or 403(b) Plan

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    >Double Taxation – Putting money away in a 401(k) or 403(b) program is a great way to shield the income from current taxes while allowing it to grow
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    For all too many workers, taking a loan against the balance of a 401(k) or 403(b) account seems like a good deal. After all, you reason, the money you pay back, including the interest, goes right back into your account. Before you succumb to the 401(k) or 403(b) loan temptation, however, it pays to take a long hard look at just how bad a deal it actually is.

    There are a number of important reasons why borrowing money from a 401(k) or 403(b) plan is the worst deal in town. The reasons to leave the 401(k) or 403(b) plan intact and seek a loan elsewhere are many, and they include:

    Double Taxation – Putting money away in a 401(k) or 403(b) program is a great way to shield the income from current taxes while allowing it to grow t

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    u pay back, including the interest, goes right back into your account. Before you succumb to the 401(k) or 403(b) loan temptation, however, it pays to take a long hard look at just how bad a deal it actually is.

    There are a number of important reasons why borrowing money from a 401(k) or 403(b) plan is the worst deal in town. The reasons to leave the 401(k) or 403(b) plan intact and seek a loan elsewhere are many, and they include:

    Double Taxation – Putting money away in a 401(k) or 403(b) program is a great way to shield the income from current taxes while allowing it to grow

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    o take a long hard look at just how bad a deal it actually is.

    There are a number of important reasons why borrowing money from a 401(k) or 403(b) plan is the worst deal in town. The reasons to leave the 401(k) or 403(b) plan intact and seek a loan elsewhere are many, and they include:

    Double Taxation – Putting money away in a 401(k) or 403(b) program is a great way to shield the income from current taxes while allowing it to grow

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    (b) plan is the worst deal in town. The reasons to leave the 401(k) or 403(b) plan intact and seek a loan elsewhere are many, and they include:

    Double Taxation – Putting money away in a 401(k) or 403(b) program is a great way to shield the income from current taxes while allowing it to grow

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    >Double Taxation – Putting money away in a 401(k) or 403(b) program is a great way to shield the income from current taxes while allowing it to grow tax free until withdrawal. Along with the Roth IRA, the 401(k) or 403(b) is the best way to save for retirement. If you invade that nest egg prematurely, you will be pulling out those pretax dollars. To make matters worse, the money you use to repay the loan will already have been taxed. When you do eventually withdraw the 401(k) or 403(b) money in retirement, you will get hit with taxes again – a double tax hit.

    What if You Lose Your Job – If you get laid off, or leave your employer to take a better offer elsewhere, you may have to repay the entire balance of the 401(k) or 403(b) loa

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