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

Stayed. Could that be the reason loans are still available?.

It looks like it. I went with the higher company match and I don't have access to anything. I can't change my contribution, no loans and no withdrawals. It says I have to call if I have any questions.
 
It looks like it. I went with the higher company match and I don't have access to anything. I can't change my contribution, no loans and no withdrawals. It says I have to call if I have any questions.
That’s exactly what I’m getting Starting to wish I stayed the same now
 
As much as we make we shouldn't need loans cmon? Force yourself to save something every week I put $300 a week in savings along with $125 a week in Roth IRA and my 401k allows 5% after tax.
 
Wow the reading comprehension in here. I mean I know we are truck drivers but wow. You can still take a LOAN out of your 401k. Just call vanguard and they will email you all of the information in a link you just click. Doing it online is much faster and the charge to get the loan is only 50 bucks. I just went through this although I didn’t end up actually following through with getting the loan but did call them and find out all the info I just described to you. I hope this answered the question although I’m sure the input from all the financial advisers and life coaches in here was great.
 
Huge tax hit plus if you terminate employment with he company the balance is due in full I heard, Correct me if I am wrong

Taking a loan against your 401K is not a taxable event. It's a secured loan with your 401k as collateral, not a withdrawal. If you terminate employment, the full amount becomes due. If you don't repay it, it becomes a withdrawal and then it's a taxable event. When you roll your 401k over or cash out, they roll or pay the amount left after they take what they're owed.
 
Taking a loan against your 401K is not a taxable event. It's a secured loan with your 401k as collateral, not a withdrawal. If you terminate employment, the full amount becomes due. If you don't repay it, it becomes a withdrawal and then it's a taxable event. When you roll your 401k over or cash out, they roll or pay the amount left after they take what they're owed.
there ya go ... 401k would be the last place I would borrow if I was the borrowing type.
 
there ya go ... 401k would be the last place I would borrow if I was the borrowing type.

I actually prefer it. I needed money during COVID shutdowns because the hours got cut, but the bills kept coming. The loan had a 3% interest rate and had no impact on my credit, whereas racking up a credit card (with hours cut/cc days paycheck) or taking an outside loan would've had a higher interest rate and a negative impact on my credit. I paid back 20 dollars a paycheck for 2 years, no biggie and it got me out of a hole fast. I had the option to pay it off faster, but I didn't.

To each his own, but there isn't anything wrong with taking a loan as long as you don't plan on leaving.
 
I actually prefer it. I needed money during COVID shutdowns because the hours got cut, but the bills kept coming. The loan had a 3% interest rate and had no impact on my credit, whereas racking up a credit card (with hours cut/cc days paycheck) or taking an outside loan would've had a higher interest rate and a negative impact on my credit. I paid back 20 dollars a paycheck for 2 years, no biggie and it got me out of a hole fast. I had the option to pay it off faster, but I didn't.

To each his own, but there isn't anything wrong with taking a loan as long as you don't plan on leaving.
I don't borrow money anymore, only money I have borrowed in the last 20 years was for my house which I paid for in 5.5 years.
 
I actually prefer it. I needed money during COVID shutdowns because the hours got cut, but the bills kept coming. The loan had a 3% interest rate and had no impact on my credit, whereas racking up a credit card (with hours cut/cc days paycheck) or taking an outside loan would've had a higher interest rate and a negative impact on my credit. I paid back 20 dollars a paycheck for 2 years, no biggie and it got me out of a hole fast. I had the option to pay it off faster, but I didn't.

To each his own, but there isn't anything wrong with taking a loan as long as you don't plan on leaving.
Another thing to consider is the money that you took out of your 401K isn't working for you anymore.
 
Another thing to consider is the money that you took out of your 401K isn't working for you anymore.

I guess it depends on how much you borrow and how long until you retire. The money I borrowed wasn't enough to make that big of a difference and I'm far from cashing out. The credit hits would have had more negative effects than borrowing the money.

It also has to do with how I handle money. I put as much into my 401k as I can to reduce taxable income. I also overpay in taxes and I don't do savings accounts. I think savings accounts are a losing game where banks make money and you get squat. Anything left over at the end of the week goes to the investment account and I don't touch that.

That's my take on it and I'm not an accountant. I did simple math and that's what worked for me.
 
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