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AA5B , 11 months ago No. – employer matches typically have a vesting period where it’s not yours to withdraw — actual withdrawal means paying the taxes you skipped plus a penalty – loans can be useful, but you have to pay yourself back and meanwhile that money is not invested. – loans have a low interest rate, so your loan to yourself is making almost nothing compared to if it was left in an investment – loans need to be payed back immediately if you leave the company for any reason, otherwise it’s an early withdrawal with all those taxes and fees
No.
– employer matches typically have a vesting period where it’s not yours to withdraw
— actual withdrawal means paying the taxes you skipped plus a penalty
– loans can be useful, but you have to pay yourself back and meanwhile that money is not invested.
– loans have a low interest rate, so your loan to yourself is making almost nothing compared to if it was left in an investment
– loans need to be payed back immediately if you leave the company for any reason, otherwise it’s an early withdrawal with all those taxes and fees