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RE: Preparing For Job Loss: Savings
I would add if you are gonna take from your 401K to just do a loan that way you avoid the 10% penalty on early withdraw, but you do have to pay it back with interest but it is better than paying a 10% tax. We had to do that once, and our 401K charged us 5% interest, that was paid back into our account. All in all it only cost us $25 to borrow $10K and we paid it back.
Thanks for the information. I'll investigate that as well. I have a few weeks before I lose my job but I was told If I borrowed against my 401k and lost my job the full amount would be due immediately. I'll have to research it more. Glad you were able to borrow and pay it back!
yeah we had a way to pay it back, and we were still working. So that could be a consideration