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There's a difference between 401(k) withdrawal and a loan?

Started by Deleted user
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Carlo B.

401k is an investment portfolio usually though an employer. The money is yours, however there are constraints and fees that may occur when withdrawing before age 59. A loan is a a fixed amount that one pays back principal + Interest.

Deleted user

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Jamie N.

I took out a loan from my 403B to use to consolidate higher-interest debt. The payment schedule is spread over five years and payments are taken out of my paycheck. I'm grateful that was an option for me.

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Abigail S.

I took out a loan from my 403B to use to consolidate higher-interest debt. The payment schedule is spread over five years and payments are taken out of my paycheck. I'm grateful that was an option for me.

Glad that was helpful for you

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James P.

With the loan the balance isn’t reduced unless you don’t pay the loan back. The loan seems like a better option than the 401 k withdrawal

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