and of course the interest you pay yourself for a 401k is not deductible when you pay it, and you will pay income tax on that same $ when you withdraw it. So you actually pay income tax twice on the same $, that portion of the 401k re-payment that is interest. And you have to pay some interest, part of the regs I believe.
Quote from: H3Jim on September 20, 2006, 04:25:37 PMand of course the interest you pay yourself for a 401k is not deductible when you pay it, and you will pay income tax on that same $ when you withdraw it. So you actually pay income tax twice on the same $, that portion of the 401k re-payment that is interest. And you have to pay some interest, part of the regs I believe.I just checked the regs for a loan from my 401k online. They only tax the loan amount as a distribution if you default on the loan.I wouldn't consider a 401k loan for myself since I am almost certain of a layoff in a few years. The newspaper business is going straight downhill in a hurry and though the business is still very profitable today, the stockholders are eventually going to want to see more expense cuts unless there is an unlikely turnaround. (Newspapers make WAY more profit as a percentage than oil companies, but nobody complains because the sheer dollar amounts are several orders of magnitude lower.)Brian Elfert
[Darn Brian, I always wondered what type of field you were in, but news paper wasn't even close to what I'd imagined! Of course nobody suspected Clark Kent of being Superman either ! LOL! I just had figured you were into like engineering or something in the airplane or simular industry with the rocket projects an stuff! LOL ! I guess I way off ! BK