Originally Posted by
Octaflugaron
...but you must pay it back to yourself with interest. 4.5%, I believe.
Actually, I guess it depends on if you take the loan or a distribution. Schwab website has all the details.
- Octa
Not quite. There’s a loan that you pay back at whatever percent, and then there’s a straight withdrawal up to $100k. No penalty but you do owe the taxes on it. But, you have 3 years to pay the taxes, and 3 years to put it back in. You only owe taxes on what you don’t put back in, and any money you put back in is pre tax. It’s a good deal.