[quote=AN][quote=flu][quote=AN]I find it A LOT easier to just roll my IRA into my 401k, then borrow from that.[/quote]
Assuming you’ve already done that :)[/quote]
Depending on if your IRA is Roth or not. If it’s Roth, you can withdraw the contribution and pay off your 401k loan, then take out another loan from your 401k.[/quote]
Actually, you bring up a good point…I don’t have a traditional Roth…But I do have a Roth 401k…. The problem is that while you are actively employed with a company, the company’s plan typically doesn’t let you roll money out of the account until you are no longer with the company…
That said, I don’t typically like to take money out of a Roth account, because assuming the government keeps it’s word (which at this point I question), there IS an advantage to keeping that account as large as possible….To let it compound and grow tax free (again, big assumption here they don’t change the rules..If not at the federal level, maybe backassward CA will try to tap that…)…
Traditional IRA/401k on the other hand, I think is just an elaborate scheme between the financial institutions and the government to try to get people to accumulate a lot of deferred income so that by the time they retire, they can pay just as much taxes or if not more taxes than during their working years… and money in those accounts is like dead equity in a house that can’t be utilized today….
That’s why I think try to extort borrowing from it as much as one can, since who knows who well a 401k really will perform and who knows what sort of tax rates you’ll see even if you did do well.
