"asdf" <qjohnny2000[at]yahoo.com> writes:

- quote -

By the entity running the 401(k) plan.

- quote -

Since it is a personal loan that is not secured by your residence, no,
the interest is not tax-deductible.

- quote -

Likely not. Also plans (and maybe the tax law?) often impose a
maximum loan amount no matter how high your vested balance is.

Keep in mind that if you leave/get fired, there's an excellent chance
you'll be required by the plan to pay back the loan in full. If you
wholly or partially default, the remaining loan balance is considered
a distribution and is subject to income tax and the 10% early
withdrawal penalty.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

"asdf" <qjohnny2000[at]yahoo.com> writes:

- quote -

And it's almost always a bad idea. Aside from
opportunity cost of investment, etc. etc., there
is the problem that if you leave your job, you
either have to pay it all back right away or it
counts as an early distribution subject not only
to income taxes but a 10% penalty, too.

- quote -

Depends on the plan.

- quote -

Absolutely not.

- quote -

Almost certainly not. Check with your plan sponsor.

But seriously, think twice and then think twice again
before doing this.

If the problem is that without the 401k money, you'd
not have enough for a down payment, you should talk
to a mortgage broker who knows what he's doing and
explore other options.

--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting

Hi -

I am thinking of buying a home for the first time. I have about 120k
in a 401k with about 90k vested ( 30k not vested ). I heard that you
can borrow against a 401k. Couple of questions -
- how is the interest rate determined ?
- is the interest tax deductible ?
- can i borrow against the non-vested part ?

Thanks!
Steve.