Results 1 to 6 of 6

Thread: 401K thing...

  1. 07-10-2008, 10:38 AM #1
    mike1w
    mike1w is offline
    Registered User mike1w's Avatar
    Join Date
    Jun 2008
    Posts
    27
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default 401K thing...

    I may have to withdraw or borrow against my 401K to catch up on mortgage payments. Any thoughts?
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!Share on FacebookSpurl this Post!Reddit!Wong this Post!
    Reply With Quote Reply With Quote
  2. 07-10-2008, 10:40 AM #2
    Russ
    Russ is offline
    Super Moderator Russ's Avatar
    Join Date
    May 2008
    Location
    Michigan
    Age
    51
    Posts
    3,870
    Post Thanks / WTG / Hug
    Rep Power
    41

    Default

    Don't do it. I think it is the worst place to borrow money from.Get a side job, work with the bank, etc etc etc.

    How far are you behind?
    Russ

    Truck payments: 10 9 8 7 6 5 4 3 2 1 WAHOO!
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!Share on FacebookSpurl this Post!Reddit!Wong this Post!
    Reply With Quote Reply With Quote
  3. 07-10-2008, 10:40 AM #3
    Denvergirlie
    Denvergirlie is offline
    Registered User
    Join Date
    Feb 2007
    Posts
    487
    Post Thanks / WTG / Hug
    Rep Power
    9

    Default

    401K withdrawals are never a good idea, but the exception to this rule would be if you are in danger of defaulting on your mortage.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!Share on FacebookSpurl this Post!Reddit!Wong this Post!
    Reply With Quote Reply With Quote
  4. 07-10-2008, 10:42 AM #4
    larabelle
    larabelle is offline
    Registered User
    Join Date
    Sep 2007
    Location
    Texas
    Age
    49
    Posts
    1,149
    Post Thanks / WTG / Hug
    Rep Power
    9

    Default

    I would not do it unless you are in danger of default.
    Do everything in your power to avoid it.
    Baby Step #1 Done!
    Baby Step #2 Beginnning debt balance 01/01/08 $78K /Paid in full on 08/06/10
    I'm debt freeeee............ GOD IS SO GOOD!!!
    Baby Step#3 Goal: One year emergency fund began saving Jan 2011 accumulated Aug 2011 YIPPEE!!! God is sooo good to me!!!
    Baby Step #4 Yep currently doing this.
    Baby Step #5 No kids so no need.
    Baby Step #6 Renter.. Working on putting 100% down on a house!!! Currently have 25% saved.
    Baby Step #7 Someday.......
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!Share on FacebookSpurl this Post!Reddit!Wong this Post!
    Reply With Quote Reply With Quote
  5. 07-10-2008, 10:43 AM #5
    FrugalMomof3
    FrugalMomof3 is offline
    Registered User FrugalMomof3's Avatar
    Join Date
    Jan 2006
    Location
    Northern NJ - PBurg
    Age
    39
    Posts
    9,272
    Post Thanks / WTG / Hug
    Rep Power
    20

    Default

    I say if you are in danger of defaulting on your mortgage than do it but otherwise it is NOT a good idea to borrow from there, remember there are early withdraw penalties as well.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!Share on FacebookSpurl this Post!Reddit!Wong this Post!
    Reply With Quote Reply With Quote
  6. 07-10-2008, 10:49 AM #6
    Greebo
    Greebo is offline
    Rude and Vile Master Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    43
    Posts
    8,243
    Post Thanks / WTG / Hug
    Rep Power
    71

    Default

    You can be penalized SERIOUSLY by the IRS if you do this.

    Get another job - sling boxes for UPS, deliver pizza, something - anything - but do not draw on your 401k unless its absolutely necessary. And absolutely necessary means you are ALREADY doing everything you possibly can to make money and still aren't making ends meet.

    Quick fixes do not make long term solutions.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"

    Greebo    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
     WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three     Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!Share on FacebookSpurl this Post!Reddit!Wong this Post!
    Reply With Quote Reply With Quote
« Previous Thread | Next Thread »

Similar Threads

  1. Best choice to put ex-job 401k in....
    By choski in forum Dave Ramsey
    Replies: 2
    Last Post: 02-01-2012, 10:40 AM
  2. Stop contributing to 401k or borrow against 401K to pay off high credit card debt?
    By butch85 in forum Debt Reduction & Money Management
    Replies: 8
    Last Post: 12-27-2011, 07:07 PM
  3. What to do with 401k?
    By Preston in forum Debt Reduction & Money Management
    Replies: 17
    Last Post: 08-11-2011, 06:24 PM
  4. Advise on my 401K please
    By alarosalpn in forum General Chat
    Replies: 16
    Last Post: 07-16-2008, 08:59 AM
  5. 401K - What would you do?
    By Telephus44 in forum Debt Reduction & Money Management
    Replies: 0
    Last Post: 11-22-2006, 01:05 PM

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Forum Rules