Paying off a 401k Loan

Описание: What happens to the money that is paid back on a 401k loan?...
The short answer is, it goes back into your account.

The long answer is, be careful with 401k loans

▶ Typically they must be paid back within 5 years plus interest

▶ If not paid back, it will be treated as a distribution and you will be taxed and penalized on the withdrawal

▶ You do not get a tax deduction on the loan repayment

▶ If you stop contributions to pay off the loan it could set you back in your retirement goals and take years to "play catch up"

While it may be tempting to take a 401k loan because it is easy it should be considered as a last resort.

Consider other altrenatives such as:
👉Your HSA account, if it's a qualified medical expense
👉Emergency fund
👉Using other non-retirement savings, such as checking, savings, and brokerage accounts
👉Home equity line of credit
👉Withdrawing from a Roth IRA—contributions can be withdrawn any time, tax- and penalty-free

Thanks Joemo for submitting your question and watching my videos on YouTube!

#financialplanning #401kplan #retirementplanning
Helping you to be wise with your money!
To see more videos discussing personal finance Subscribe:
https://www.youtube.com/channel/UCbDA...

For more resources: 👉 https://wfa-nc.com/insights

📝 Get your Free Retirement Plan checkup
https://wfa-nc.com/retirement-plan-ch...

To schedule a complimentary consultation with me: 👉 https://wfa-nc.com/connect

I want you to be more confident in your future:
whether that be through preparing for retirement,
financial planning, portfolio analysis, or college planning.

I trust the information you receive through these videos
proves helpful with your personal financial situation!

Website: www.wfa-nc.com
Facebook:   / keithwilsonf.  .
Linkedin:   / keithwils.  .

I am looking forward to seeing you achieve your financial goals!