The Ups and Downs of 401(k) Loans

When times get tough you may find yourself short of cash. And times are tough right now for a lot of people. Even if you still have your job your spouse or partner may not, friends or family may need help, or you may just want to be prepared if you find yourself short of cash suddenly.

For the next few weeks we’ll be talking about short term sources of money if you find yourself in need. No judgement about how you ended up here, we all do at one time or another. But you should know the pluses and minuses of the different options.

First up is the 401(k) loan. If you have a 401(k) plan at work you may be able to borrow money from yourself by temporarily taking money from your 401(k) balance. These are loans, not withdrawals so you have to pay it back and there are fewer taxes and penalties. Read the full article here to understand how a 401(k) loan works and when it may be an OK option for you.