Just found out my bonus for this year. Thinking of using it for a home improvement project. Would prefer to not have Uncle Sam take his greedy chunk. Thinking about contributing it into my 401k pretax, then take a loan on the 401k for the amount needed. I’m no finance guy, am I missing something?

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Posting as :
works at
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You have to pay the loan back. Or else it becomes a taxable distribution.

Yea maybe not worth the risk. Thanks

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If taxes are your major concern, why aren’t you already maxing out your 401k?

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