{ "media_type": "text", "post_content": "Is it wise for my situation to take a loan against my 401k @ 5.5%? Hv 60k international mortgage left of 200k at 9%, can’t refinance here. Hv 32k in 401k, 25k In emergency in HYSA.", "post_id": "5d8ab39b247c36002fe7cbbd", "reply_count": 5, "vote_count": 1, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter" }

Is it wise for my situation to take a loan against my 401k @ 5.5%? Hv 60k international mortgage left of 200k at 9%, can’t refinance here. Hv 32k in 401k, 25k In emergency in HYSA.

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If you lose your job for any reason - the entire 401k loan amount it due at that time.

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I am 30 years and I know savings and 401k is low, it’s coz I am an international, and I had grad school loans and now home loans for parents back home.

If you can afford the 10% penalty + taxes on it...and there’s no other way do what you have to do, but strongly recommend against it. In essence you’re paying a 45% or so penalty for taking it out BUT you are paying yourself back so...

A 401k loan is not the same as a withdrawal, so the penalty and taxes do not enter the picture. Overall seems like a good idea to knock out high interest debt, but most plans will only allow a loan of ~50% of the value of the account, so $15k in OP’s case.

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Instead of taking a loan against your 401K consider reducing your 401K contributions to a level that gets you the employer match. Use the extra cash to pay off your debts

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