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Expert Q&A

Why is a 401k loan a bad idea?


Related Topics: Retirement Planning, Saving, IRA and 401ks
Related Tags: 401k
Dennis Cherenkov
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By Dennis Cherenkov - Primerica Financial Services
Answered 11 months ago

Debt in general is bad. One major risk of borrowing against your 401(K) is having to pay back that loan within 60 days if you lose your job or quit, and of course if that happens usually no one can and then they get hit with taxes and penalties.

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