Can i use my 403b as collateral for a loan?

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German Wiza asked a question: Can i use my 403b as collateral for a loan?
Asked By: German Wiza
Date created: Fri, Mar 5, 2021 12:24 PM
Date updated: Sun, Jan 1, 2023 7:15 AM

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Video answer: This is why you never borrow against your 401

This is why you never borrow against your 401

Top best answers to the question «Can i use my 403b as collateral for a loan»

You can borrow up to $50,000 or half your vested account balance, whichever is less. Typically, loans require repayment over five years, but when you use the proceeds for your down payment on your main home, you can take longer. Plus, the interest you pay goes back into your 403(b) account.

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If you don’t want to leave your employer or take a hardship withdrawal, you may be eligible for a loan against your 403(b) funds that you can use to pay your mortgage. A 403(b) loan uses the retirement account funds as collateral against borrowed money.

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