Does anyone loan against 401k - Posted by Bryan

import · March 12, 2001, 6:29pm

Posted by Bryan on March 12, 2001 at 19:57:54:

Thanks for the info, very helpful

import · March 12, 2001, 6:29pm

Posted by Bryan on March 12, 2001 at 19:29:48:

Hi all,

I have a 401k plan that I can’t touch until I leave my employer. That is, the employer does not allow borrowing against it or even hardship withdrawals. I would have to change jobs and cash out.

I really want a crack at this money so I can begin RE investing. What I want to know is, are there any lenders who will count a 401k plan as a down payment if I sign them on as a beneficiary…or alternatively, are there any lenders who will loan money with a 401k as security.

I know this is a long shot, I’ve never heard of anyone doing this, but I thought I’d see if anyone knows anything about it.

Thanks in advance,

Bryan

import · March 12, 2001, 6:53pm

Re: Does anyone loan against 401k - Posted by Nate

Posted by Nate on March 12, 2001 at 19:53:42:

Actually, you’re not allowed to pledge a 401k for a loan other than a loan FROM the 401k plan itself. Since that is not allowed by your employer, looks like you’re out of luck.

Alternatively, you could change jobs, which would enable you to cash out the plan or roll it over into a new one - just make sure the new employer allows you to borrow against the rolled-over amounts.

NT