Does Facebook allow its employees to take out a loan from its 401k plan ? I am joining FB in May and I have some credit card debt due to a knee surgery . I have saved up a significant amount of money in my 401k , does Facebook allow its employees to borrow from 401k?
Hey , I am planning to transfer the money I have right now in my 401k I have accrued at my current employer. I have about 120k in it .
Take a loan from a credit union . or get a new credit card from chase / bofa and do 0% balance transfer after paying 3% fee. 401k loans are bad idea.
I will explore those options , thanks for the info
I disagree. 401k loan is interest free. The interest u pay is actually urs and is invested. U r repaying the money u take from 401k with interest to ur self so the gains u lost by taking money as loan can be almost compensated with more investment u did with interest payment. And because u r in 401k for a long run so it makes more sense to pull and put money back. Also no hard credit check like if u apply for a new credit card. Go for 401k loan I would say.
Use your fb sign on bonus to pay it off
I did not get too much of it and my credit debt is way too much .
Try to negotiate, I'm pretty sure they'll be considerate
You need a financial advisor. You may be able to use a HSA account to repay yourself if you can provide sufficient evidence it’s repaying medical procedures supported by the HSA tax code. You didn’t mention the CC interest rate so although borrowing against 401k is a terrible ideal the earnings you forego probably pale in comparison to the interest you’re accruing. Call your HR or benefit provider and get help before you bury yourself in debt.
SoFi, lightstream, Marcus Goldman Sachs all have good personal loan options
There might be a required min contribution period before you can borrow. 401k loans might be cheaper than CC rates. But do factor in the cost of lost investment appreciation and the cost of double taxation of the interest you pay. The interest you pay on the 401k loan will be to yourself but since you will be paying it with post-tax money, it will be double taxed - once now (current post tax repayment) and once when you withdraw your 401k.
Most companies allow it. You can borrow up to 50k or 1/2 of your 401k, whichever is less. Given that the market is pretty much at the peak, a 401k loan would be the best choice. Chances of market dropping a few thousand points is higher now than going up a few thousand points in the next few years. Pros: very little paperwork and no credit check, money in your account in 3 days. Con: missing out on potential market gain. I recommend you go for it. Don’t borrow from places like SoFi or Lending Club where they advertise low rates, but when you apply it’s more like 10-12%. With 401k loan, you’re paying yourself back! Good luck! 👍
You can't borrow from a 401k unless it has money in it? You should talk to a financial advisor.