Borrowing from 401k Questions?
Borrowing from 401k Questions?
So if my employer contributes .50cents for every dollar, then if i put $10,000 of pretax dollars i will have 15,000$.
1. Now if i take a loan on it i believe i can borrow 1/2 which is 7,500$ correct?
2. So if i decide to take out the entire 15,000$, I would get normal tax + penalties. How much of the 15,000$ would i still have?
Answers:
Steve D: First, you have to find out if your employer contribution has vested - you may not be entitled to the $5,000 yet. Also, you need to make sure there is no maximum on the employer contribution...most employer contributions are 50 cents on the dollar up to 3% of your pay.
In terms of number 2, you will probably have about 25% with held and another 10% in penalty, so if you are entitled to the $15,000, expect to see about $10,000 of it.
2009-11-16 17:02:48
2009-11-16 17:02:48