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Asked 8/26/2008

401k loan question pros & cons ?

What is the pros and cons of taking a 15k loan for personal and home repairs (roof & flooring) to pay back in 3-5 years @ 6% interest at age 50 ? The 401k balancea doesnt seem to be increasing at this time only loosing my money ?

 
 
 
 
 
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Answer 1/1 - Submitted 9/20/2010

The con would be if you are unable to pay it back. The other con would be that the interest may not be tax deductible. If you did a home equity loan, then the interest may be deductible. I would check with your CPA.

 
 
 
 
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