Can you take out a loan against your 401k while you’re on a Leave of Absence?
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Advice needed. My husband is 10yrs older he's about to retire early, he wants me to sign and agree to not take any portion of his retirement instead he will purchase a whole life policy and I will be the beneficiary. What do you recommend that I do....accept the default 50% 50% plan which deducts $700 per month from my husband but gives me 50% monthly payment for life, if he dies or allow him to get his entire benefit payments but I will get nothing from his pension upon his death? Thank you
My wife and I (both 32 years of age) together make $860k annually gross. She’s an ophthalmologist who bought into her practice and does super well. I work at Big 4. Currently, we auto invest $2500 a month into VOO and max out our own 401ks but not much else. I feel like we are falling behind even though we make in the top 1%. We have a low interest mortgage in a LCOL area close to a MCOL city (think 40 min outside Midtown ATL but not Atlanta). We have no kids yet but plan to. Cont…
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If you’re still an employee, you should be able to. But most have payment terms for withholding from your paycheck. So if you aren’t getting paychecks, you might need to make direct payments yourself so the loan doesn’t default, resulting in deemed distribution of the loan, triggering taxes
The norm is 3 months no payment = default. You’d have to read the specific provisions of your plan, but I don’t normally see loans rolled over (I audit EBPs). Once you leave and the loan defaults, you’ll get a 1099 and have to pay taxes. Wouldn’t be any different than if you just terminated and decided to take a lump sum from your account rather than roll it over.