Borrowing from your 401k is dumb. Borrowing from your 401k when you supposedly have access to other funds is just beyond dumb lol. Again dumb ideas or decisions should be called out that’s all I’m doing.
Bank deposit on hold
- Thread starter 1100011CS
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Borrowing from your 401k is dumb. Borrowing from your 401k when you supposedly have access to other funds is just beyond dumb lol. Again dumb ideas or decisions should be called out that’s all I’m doing.
I'd rather someone borrow from their 401k than take an early distribution.
But I am not going to call someone dumb for doing what they want.
Most people make some dumb financial decisions but it's their decision and if they are ok with it then so be it.
5 pages and multiple arguments when a simple, "yes, that's normal" would have done.
Never change, CF.
Never change, CF.
I never called him dumb. I said borrowing from your 401k is dumb. Glad you agree with me.
Partially true. Very rare to get a check from a real estate closing and then a hold of 7 days on the deposit.
Almost every single thing have posted in this thread is wrong. Literally.
Like I said I'd much rather have someone borrow than withdrawal. At least borrowing it is going to get paid back.
I am trained annually on bsa, aml, and all of the various iterations. You are way outside of your knowledge zone corky.
They paid themselves back with interest. Why are you mad they paid themselves that interest instead of a loan company? Do you run one of those loan on your car title places down in Missouri.?
If so shame on you for taking advantage of people.
I had savings. The difference is if I used my savings instead of my 401K it would have been difficult to "pay it back." But because there was already a mechanism in place to pay back my 401K (right out of my paycheck so I didn't even miss it), it was easier to do it that way. So I wound up eventually with the same amount of money in my 401K, plus 6 percent interest, but I wouldn't have necessarily paid back my savings because the same mechanism -- to deposit money out of my check straight to savings -- wasn't available at my work. I suppose I could have set one up privately, but why when there was already a mechanism in place?
In addition, my 401K was paid back through my paycheck before taxes were taken out. So that portion of my income wasn't taxed. If I set up a private mechanism to pay my savings account back, it wouldn't have been a pre-tax withdrawal like the 401k withdrawal was. It was a no-brainer for me. You can call it stupid all you want. Neither you nor Dave Ramsey will ever convince me that what I did was stupid.
Yeah that would never work, or everyone would take loans out vs their 401k and then repay themselves tax free. It would be like a 30% raise.
