Here’s the breakdown of what you need to know before you tap into your retirement:
✅ You pay yourself back: The interest you pay on the loan goes back into your own account, not to a bank.✅ Easier approval: There’s usually no credit check because you’re borrowing your own money.✅ Lower interest: Rates are often lower than traditional personal loans. borrowing from 403b to buy house
⚠️ The Opportunity Cost: That money is no longer invested. You miss out on potential market growth, which can cost you thousands in the long run.⚠️ The "Double Tax" Trap: You pay the loan back with after-tax dollars, and then you’ll be taxed again when you withdraw it in retirement.⚠️ The Job Change Risk: If you leave your job, many plans require you to pay the balance back in full very quickly—or it counts as a taxable distribution (plus a 10% penalty if you’re under 59½). Here’s the breakdown of what you need to
#RealEstate #403b #HomeBuying #FinancialFreedom #RetirementPlanning #MortgageTips borrowing from 403b to buy house
Have you ever used a retirement loan for a big purchase? Let’s talk about it in the comments! 👇
