Can I Get a Loan From a Workplace Retirement Plan?

Some work place retirement accounts allow loans. You may be permitted to borrow half of your vested balance, up to 50 thousand dollars maximum. However, making a distribution means you do have to pay taxes and an early withdrawal penalty. While taking a loan from a retirement plan at work might sound like a good idea, i do want to make sure you understand that one of the biggest problems with doing that is if you don't repay it on time,. The outstanding balance becomes an early withdrawal. If you leave your job or you get fired, in most cases, you've got to come up with the entire outstanding loan balance within a very short period, such as 60 days.