| The 401k is a retirement plan funded by the | | | | account when you reach 70 years of age. This would |
| employee contributions. It often matches the | | | | avoid the taxes & penalties. |
| contributions from the employer often. It is more | | | | · Request your older funds from your past |
| attractive due to the fact that the contribution is | | | | employers. You have to deposit this amount within |
| taken from the pre tax salary. The funds are grown | | | | two months of receipt to avoid the penalties or |
| without any tax till the time they are withdrawn. | | | | taxes. |
| Borrowing money from a 401k is a good option as | | | | · Go for a loan from 401k in order to avoid |
| the plan is self directed. It is portable too. | | | | the penalties related to the early withdrawal. |
| This plan offers the following advantages: | | | | · You may use your 401k without fines if |
| · Contribution has to be paid from the pre | | | | you are using funds in order to prevent hardship at |
| tax salary. It reduces the total amount of tax to be | | | | home. You may also take benefit of the flexible |
| paid. | | | | repayment options. |
| · The employee is able to decide the | | | | · Go for education through a loan taken from |
| direction for the future contributions. | | | | your 401k account. You may withdraw funds from |
| · If the company matches the contributions, | | | | the employee sponsored account every year to pay |
| its like having additional money along with the salary. | | | | off the expenses to excel in your career. |
| How to borrow against 401k retirement money | | | | · Pay off the medical bills that are not |
| without fines and penalties? | | | | insured by the employer's plan. These withdrawals do |
| · Wait till the time you reach the minimum | | | | not add the taxes or penalties provided you pay off |
| age. You must be 59 years & 6 months old to | | | | your loan on time and maintain your records properly. |
| access the account. You must start accessing your | | | | |