Video answer: Can i use my 401k as collateral for a loan?
Top best answers to the question «Loan with 401k as collateral»
- 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
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the limit on most 401k accounts is 50K (loan), you could cash out if really desperate, but you would pay taxes on early withdrawn.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.