Financial hardships happen, and can be experienced by anyone. Unexpected layoffs, putting kids through school, and the changes caused by COVID-19 to name a few.
Regardless of the reason, when money is needed, there is no shortage of options available for obtaining emergency funds. Borrowing from a retirement fund, specifically a 401(k), is an option many people choose.
You are essentially borrowing money from yourself via your retirement funds, and paying yourself back, as opposed to acquiring a loan from a more traditional source such as a bank. While the process is fairly straightforward, the necessities and reasoning behind it and the potential repercussions should be considered before transferring any money.
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