Hardship loan from my 401K

58mlp · #1 Jun 24, 2007, 02:54 PM

I am fully vested in my company benefits 401k program.

I need a loan but have a loan I'm still paying from 2003 from my 401k. I understand that I cannot take another loan out until the first one is paid. What is a hardship loan and is it set with any penalties? Also since I am fully vested do I have the right to take what I need?

RichardBondMan · Jun 24, 2007, 04:33 PM

You didnt give your age and its important since withdrawals are subj to tax penalties prior to age 59 1/2. You can take out your proceeds minus the unpaid loan but be prepared for some stiff tax consequences.



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