shugt23
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 28 Jun 2005
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| 401k Loan repayment |
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I have taken out a $25k loan from my 401k to pay off credit cards and car loans. I now make payments of $500/mth and will for the next 5 years. I have stock options/grants from my company that I could cash out ( which would give me just enough after taxes ) to pay off the 401k loan.
Are there any issues with what I'm planning other than the taxes I have to pay on the stock grants?
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Tue Jun 28, 2005 3:30 pm |
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MattL
Senior Member
Cash: $ 46.85
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Joined: 25 Jun 2005
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| Re: 401k Loan repayment |
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quote:
Originally posted by shugt23
I have taken out a $25k loan from my 401k to pay off credit cards and car loans. I now make payments of $500/mth and will for the next 5 years. I have stock options/grants from my company that I could cash out ( which would give me just enough after taxes ) to pay off the 401k loan.
Are there any issues with what I'm planning other than the taxes I have to pay on the stock grants?
The biggest issue would be how you are managing your credit cards now.
If it happens again you won't have anything to cash in to bail yourself out, so I would make sure the spending is under control.
$$$ Debt Elimination
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Tue Jun 28, 2005 4:34 pm |
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jlee1224
Full Member
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Location: Baltimore
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Why couldn't you cash out the stock options and pay off the credit cards directly?
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Tue Jun 28, 2005 7:54 pm |
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MattL
Senior Member
Cash: $ 46.85
Posts: 234
Joined: 25 Jun 2005
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quote:
Originally posted by jlee1224
Why couldn't you cash out the stock options and pay off the credit cards directly?
I thought about that too, but it's too late, he already has the loan.
$$$ Debt Elimination
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Wed Jun 29, 2005 2:41 am |
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