Stock market anyone?

[Abui]

Originally Posted by sladnas

Why would you want to though? The monies used to repay yourself would be after-tax dollars (I think), which would then be taxed again when you start pulling from the 401K at retirement...you also lose out on the growth of that money in the investments.

Try this example. Borrow $10,000 from your 401k. Put the money in your checking account. One month/year later pay off the loan with a check from the same account. It's before tax money, right? (Money is fungible)

The only after tax money you put in is the interest on the loan.

[sladnas]

Originally Posted by Caveman

Try this example. Borrow $10,000 from your 401k. Put the money in your checking account. One month/year later pay off the loan with a check from the same account. It's before tax money, right? (Money is fungible)

The only after tax money you put in is the interest on the loan.

Great example, thanks.