big_ragu50[at]webtv.net (Marty) writes:

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Yes.

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Only if you're in the AMT or if the loan balance is over $100K.

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Because it puts you at risk of losing your home.

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It's a moderated group. It can take a day or so, especially
if the moderator is out of town.

--
Rich Carreiro rlc-news[at]rlcarr.com

Thanks everyone

The only question I have left is this.Are both a HELOC & HEL tax
deductible.I thought you had to show proof that you were using the money
for home improvements to be tax deductible.Why wouldn't everybody use a
HELOC instead of a conventional loan if it is tax deductible?

I know this is a tax question & I did post in Misc.taxes moderated group
but my post has not showed up.Do you have to be a member of the
group?Some times groups don't like webtvers.Thanks again everyone.Great
insights.

~Marty~

On Aug 2, 12:35 pm, big_rag...[at]webtv.net (Marty) wrote:
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It is totally plan dependent, but I have seen many 401(k)s that allow
you to continue to repay an existing loan even after you are seperated
from service (fired, quit, etc). Plans that allow for this also
require that you leave your funds with the plan until the loan is
repaid. If you rollover your balance to an IRA or new 401(k), the loan
is automatically in default. Check with you plan admin or the plan
document.

We have discussed leaving or rolling over old 401(k)s ad nauseam. I
recommend a quick search to find the pros and cons of doing so, if
this is an option for you.

To answer your original question directly, yes, you can use a HELOC or
HEL to payoff your existing 401(k) loan. Whether it is the smartest
move for you or not depends, among other things, on the various loan
terms.

On Thu, 2 Aug 2007 13:15:41 -0500, Justin <nospam[at]insightbb.comwrote:

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Are you asking a tax question? You can do what you want with your
line of credit. There can be tax consequences though.

Thumper

Marty wrote:

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My HELOC had no opening fees at all, as I set it up with the same bank
as the first mortgage. $50/year fee. Good idea to set this up now, it's
far tougher to get a decent rate when jobless.
JOE

Marty wrote on [Thu, 2 Aug 2007 12:35:01 -0500]:
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http://socialize.morningstar.com/New...&convId=204126

Hi Group

Can a person apply for an equity line of credit to pay off a 401k loan
if one loses his(her) job? The 401k loan is already reality with 3 years
left on the balance.Losing the job could be in two months, two years, in
between,or never.

I know the key would be to take out the line before one loses the
job.Right? Are their any fees(upfront or annual) involved if one ends up
not using the line?

Thanks

~Marty~