Originally Posted by
TKOwnedU5
Wow wow...What 401k deal? I thought about pulling money out of mine but I don’t wanna get hit with the high penalty.
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What Rickair777 said. Mine is through Prudential, they allow you to take half of your 401k up to $50k as a loan that you pay yourself back with a 7% interest rate. If you stay at the job, they auto deduct the payback from your paycheck. If you leave the job, there is no way to pay yourself back, no paycheck, so then it goes into default and the money you took out gets counted as income. You get 1099'd, it gets taxed as income then you pay an additional 10% fee. Still 100x better than getting loan from SallyMae where they crush you with interest for the next 20 plus years.