Apr 16, 2019
In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, Advisors at Horizon Financial Group provide us some useful information regarding loans inside a 401(k) plan. Learn the positive and negative sides to pulling a loan from your 401(k), what the payback structure will typically look like, and what limitations are involved.
3 Key Points:
- “If you do have a loan prevision inside your plan, there are certain borrowing limits that you need to know about.” – Bill Bush.
- “If you are getting $1000, you are going to need just a little bit higher than $2000 invested balance in order to get that $1000, because there is a cost to processing the loan.” – Andy Bush.
- “401(k) plans, 403(b)s, those are retirement plans and meant for the long hall and not to take a loan from unless you can absolutely help it.” – Bill Bush.