Borrowing Early from a 401(k): advantages and disadvantages

A k that is 401( account might be a substantial asset and a tempting supply of funds to fund one thing you may need. Many 401(k) plans today enable individuals to borrow from their reports, with funds paid back in degree quantities over a length of no more than 5 years (longer if they're utilized to purchase a major residence).

Companies are not their workers’ monetary advisors. However, you and your employees better understand the rules and regulations around borrowing early from a retirement plan if you offer a 401(k) plan at your business, consider the following information that may help.

Advantages of borrowing from a 401(k) plan

It really is relatively simple to organize that loan whenever borrowing from the 401(k) account. (more…)