FedEx Freight | Can’t get a loan in the new 401(k) plan ??

Tigerman1

TB Lurker
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I recently went to though vanguard app to try to see abt a loan in the new plan but the Option isn’t there no more just self brokerage. I let 25% of my income go into my 401(k) I would like to access my money if I need too anybody know abt this or have the same problem ??
 
401k was set up as an incentive for long term investing,i.e. retirement. There are ways to withdraw funds early but the IRS will make you pay.
If you need to access money on a consistant basis, Id suggest put the money in a brokerage acct or money market, but its not tax advantaged.
 
401k was set up as an incentive for long term investing,i.e. retirement. There are ways to withdraw funds early but the IRS will make you pay.
If you need to access money on a consistant basis, Id suggest put the money in a brokerage acct or money market, but its not tax advantaged.
If you are using the Vanguard app I don't think you can access the loan section completely. Try the desk top version.
 
Learn more about taking a loan

If there’s no other source you can turn to for desperately needed money, consider taking a plan loan before a withdrawal. Even if you have an outstanding loan, it might make more sense to pay off your existing loan and take another rather than make a withdrawal.
A plan loan is generally a better option than a straight withdrawal. When you take a loan, you borrow from your plan and repay it to your account over time with interest. It’s a better idea than a straight withdrawal because you put the money back into your plan and you aren’t liable for additional taxes if you pay it back. However, there are a few caveats associated with a loan.
First, taking a large-sum loan and paying it back over time means that money won’t be able to grow and compound. The larger your account balance is, the more it has the potential to take advantage of long-term market growth.
Second, if you terminate employment with your current employer, your loan may become due unless you have the option of continuing to make payments via ACH in your plan. Review your plan rules or Summary Plan Description to verify. If you default, the loan payoff balance will come out of your retirement plan account balance which counts as a cash distribution. That means you’ll pay taxes and the 10% tax penalty on that payoff.
While there aren’t taxes associated with taking a loan, certain fees do apply. These fees differ from plan to plan.
 
I recently went to though vanguard app to try to see abt a loan in the new plan but the Option isn’t there no more just self brokerage. I let 25% of my income go into my 401(k) I would like to access my money if I need too anybody know abt this or have the same problem ??
You need to start over. It sounds like you jumped into the 401K for the tax advantages without first funding an account for unexpected expenses. I would advise you to pull back on the 25% 401K contributions and open a money market account at your bank. Put 10% in the 401K and 15% in the money market for at least a year.
 
Regardless of the pros (few) and cons (many), if you NEED to do a loan, call them.

From the website:

"Your redemption method is determined by plan rules. You can select the funds and sources to redeem for this loan by contacting Vanguard® Participant Services at 800-523-1188. Please note that you may incur increased costs if you request a loan through one of our Participant Services associates rather than online."
 
Sorry you're having trouble. I went right to the desk top and loans are still available along with the hardship withdrawal. Might want to reach out to Vanguard customer service if you are still having issues.

Did you stay with the pension plan or did you go to the higher company match?
 
Sorry you're having trouble. I went right to the desk top and loans are still available along with the hardship withdrawal. Might want to reach out to Vanguard customer service if you are still having issues.
You in the new plan with the 8% match ?? If you got the old plan I’m sure it’s still there because it was there before I changed
 
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