Loan with 401k as collateral?

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Helena Gislason asked a question: Loan with 401k as collateral?
Asked By: Helena Gislason
Date created: Sat, Mar 13, 2021 5:38 PM
Date updated: Wed, Sep 28, 2022 10:56 PM

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Video answer: Can i use my 401k as collateral for a loan?

Can i use my 401k as collateral for a loan?

Top best answers to the question «Loan with 401k as collateral»

Key Takeaways

  • The IRS doesn't allow you to use funds in your 401(k) account as collateral for a loan. 1
  • Under certain circumstances, you can borrow from your 401(k) if your plan permits. 2
  • Taking a loan from your 401(k) comes with drawbacks that need to be considered carefully.

Video answer: Collateral loan tips

Collateral loan tips

1 other answer

Yes, the limit on most 401k accounts is 50K (loan), you could cash out if really desperate, but you would pay taxes on early withdrawn. Getting a loan on investment properties is really headache, also check HELOCor equity from any asset you may have and use as collateral.

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