Posted on Thursday, October 30, 2014 at 12:14 pm CDT
People borrow from their 401k for all sorts of reasons. Paying off credit-card debt, medical bills, helping ends meet during a move to a new job, starting a new business, and more. Whatever the reason, no one borrows the money thinking they’re creating a tax liability that starts out at 30%+ and could swell past the total amount they borrowed in the first place. CompleteIRA.com offers people advice and guidance on 401ks and IRAs, and is highlighting the problem to try and ensure more people aren’t caught in the tax trap.
Source: Complete IRA