Financial Advise???

[AAlmeter]

Originally Posted by croatan

To avoid an early withdrawal penalty, you can borrow from your 401k. Usually a small fee involved (around $100) and you can borrow up to half the balance of the 401k or $50k, whichever is less. You then pay yourself back from your paychecks (5 years for most loans, 10 years for home loans), plus a relatively low interest rate, which goes right back into your 401k. It's usually a better way to go than taking the withdrawal penalty, I think.

If she only has 6k in there, then this may not be as good of an option as it is for those with more equity. But, again, at least it may be better than the penalty.

If you're fired or leave the company, you have to pay it back sooner, though, or pay the penalty.

***not a financial adviser***

Donnie,

Along the lines of what this feller said....

http://www.fool.com/personal-finance...csithlb0000001

Has a section on borrowing from your 401k