Hello I have a couple questions reguarding my 401k loans, I'm hoping someone will have a answer for me. I have two loans out at present totalling around 22,000. My payments are $800.00 a month in which I can no longer afford in my current situation which is medical bills,loss of household income(no longer with fiance of 8 years) and recently my employer has now cut my hours to 32 maby more not sure yet. I've been with this employer for 28 years this is where I have my 401k loans. I just want to lower my payments until my situation improves. If no one works with me on this what recourse do I have I can think of only 1 and that is default in which I still couldn't pay the penalties in one lump sum. Please help I'm pretty desperate as you can see, I'm staying with friends now and have to find a new residance by May 1 well having that payment of 800.00 a month leaves me with not much on my pay check especially with my hours cut. Thanks in advance for your time.
Got a question? Ask it. We are here to help.
Got an answer? Then Please help others.
This forum is only effective when we all help each other. Everyone is welcome and encouraged to participate.
401k Loans
| Author | Comment | ||
|---|---|---|---|
 hollywood |
401k Loans |
Lead | |
|
Posts: 1 (03/10/09 09:06:37) |
|
||
|
ralexander |
|||
|
Posts: 39 (03/10/09 09:53:08) |
You can try to contact your company, or the company administering the 401k (whoever handles the loans), to refinance your current loans; combine them into one
and get a lower interest rate while they're low. A lot of companies do not do that, though that seems to be your only option. You could also try to take a
loan from a bank and pay off the 401k loan, in hopes that the payment would be lower and the interest expense would be less than the 10% penalty & income
taxes you would face if you defaulted.
Based on your situation, you might just need to suck it up and default on one of them. If you default on it, you are not going to owe any money upfront; you will owe it when you are filing 2009 taxes, though (next year).
R. Alexander
lowcost401k.com |
||
|
hollywood |
|||
|
Posts: 2 (03/10/09 23:37:38) |
Hi Ralexander, thanks so much for your advice . Hollywood
|
||
Quick Reply
IMPORTANT NOTICE: Answers are provided as general guidance on the subjects covered in the question and are
not provided as legal, tax or investment advice to the questioner's situation. Individual situations vary. Please consult
your tax, legal or financial advisor for more detailed information and advice.
Visit www.401khelpcenter.com for more help and information on 401k plans.
