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5 of your loan right off the top. In addition, some 401k loans have administration and maintenance fees that last until you pay them back. Again, these fees are much lower than the interest on a payday loan, but they arent negligible either.
Double Taxation. When you donate to a 401k, you use pretax dollars, and merchant cash advance iso application pdf dont pay tax on the money until you withdraw it. However, when you borrow from a 401k, you have to pay back the loan including the interest with after-tax dollars.
This means that you get taxed twice on the interest you pay: once when you deposit it, and again when you withdraw it. But this extra tax doesnt add up to that much money.
WhiteRockLoans. com is not a lender and does not make loan or credit decisions. WhiteRockLoans. com connects interested persons with a lender from its network of approved lenders. WhiteRockLoans. com does not control and is not responsible for the actions or inactions of any lender, is not an agent, representative or broker of any lender, and does not endorse any lender.