RV Financing
Ok, this is a little different situation, but wondering if anyone has ever tried to do this. We currently own a Montana 5th wheel, and we financed it through my 401k. We still owe $35,000 on the loa...
Forum Discussion
skipro3 wrote:
A 401K loan is borrowing your own money and paying it back to yourself with interest to your own account. Loans are for either 5 years for personal property purchases, or 15 years for anything dealing with a house; purchase, upgrades, etc.
You don't 'qualify' for a loan of your own money and you don't hurt your credit rating if you 'default' either.
You can sell this RV any time you wish. No bank holds title to it, it's all in your name. Take the cash and either pay back to your account, or just stop paying your 401K loan and pay the early withdraw penalty. 10% I think so with your 'loan'of $35,000, you cough up $3,500 and you are done making payments, can sell it outright if you wish, and take the money from the sale to fund your 401K or if you do it within 30 days, roll over to an IRA without ANY tax / early withdraw penalty.
While this is true, you also lose the interest on the money you withdrew...Our 401k loan interest is at 3.5%. You lose money for every interest point above that 3.5% that your 401k could of been earning.
