Don’t Borrow $$$$ From Your 401k Retirement Savings Account May 13, 2008
Posted by dhconcerts in About Life, Health, Peace, Justice and Equality, Quoting Others.trackback
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Don’t listen to me. I’m not a financial person. But, I agree with this advice. Check out this story by an HR person who was not allowed to counsel employees against borrowing from their 401k retirement savings accounts. When they lost their jobs during a restructuring of the company, they had only 90 days to repay the money or else face huge tax penalties.
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Here’s an excerpt from Team Building Is for Suckers:
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A former employer of mine allowed employees to borrow money from their 401(k)s and repay the loans through payroll deductions; however, my employer was also engaged in a massive restructuring effort. Many employees lost their jobs.
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As the on-site HR Generalist, I was exposed to the unfortunate financial illiteracy in my otherwise educated workforce. …
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Had I been able to provide proactive advice, it would have gone something like this:
- Don’t take a loan against your 401(k).
- Don’t do it.
- Just don’t.
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