I think the loan thing might be dependent on who's handling your 401k. It was available to us when we moved, but I'm not sure if that's universal.

yeah loan you have to pay back and withdrawal no, its yours to keep, so make sure youre sure on what you want to do. remember if you withdraw $50k for example itll take you 2.5 years to put that back in due to contribution limits, whereas with a loan you could theoretically put it all back in the next day by repaying it

interest is usually prime rate plus a little bit. so no matter what amount you borrow you’ll owe 4.25% or 4.5% in interest (which gets paid back into your retirement account anyways) and thats the annual rate. the effective interest rate will depend on what you set up your repayment term as (long repayment terms = higher effective rate but due to time but lower fixed payments on your repayment schedule)

This post was edited by excellence on Aug 9 2020 11:47am

Can you break contribution limits by taking a loan and paying xtra into your account via the interest on it ..?

Assuming U have contributed 19.5k after your “loan”

This post was edited by Bazi on Aug 9 2020 12:03pm

its not considered a contribution then. so in theory sure. max loan is $100k through the end of the year for right now then it goes back to $50k. so at 4.5% a 100k loan would be like 11-12k or so in interest over 5 years. which you could pay it all back then in theory (you would owe $112k, the loan term sheet would spell it all out for you)

and you can only do a certain number of loans in a set amount of time, i’m sure the 401k plan administrator would figure out what you were up to and tell you to knock it off

This post was edited by excellence on Aug 9 2020 12:21pm

Understood.

Interesting and thanks for your infos

Yes this is allowed on this fidelity account.

This post was edited by Skinned on Aug 9 2020 01:49pm

Thinking about the 300 vs 100 unemployment benefit, I initially thought it was balanced, but now I can't imagine states have that available in their budgets. As was brought up earlier in the thread, states can't just print money, and especially now where their income is far lower than was planned for the year and expenses are likely higher I can't imagine most states have the money to put up even if they really wanted to.

Been working through this whole shitfest.
Doesn't apply.
That tax break is nice though cause I've been keeping about an extra 300ish per check.

Couldnt they run some sketchy tax scheme where they raise state taxes by $100 per person per week and use this money to "unlock" the federal $300?

People would effectively only get $300/w that way, which might be a bit low for many families though.

You don't get to keep it. It's a deferment, not a tax holiday. Don't spend it now or you're going to be fucked.