Comments on: Any way to use 401k to help pay for grad school? http://www.secretfinance.com/blog/any-way-to-use-401k-to-help-pay-for-grad-school/ Thu, 17 May 2012 16:52:58 +0000 http://wordpress.org/?v=2.7 hourly 1 By: digdowndeepnseattle http://www.secretfinance.com/blog/any-way-to-use-401k-to-help-pay-for-grad-school/comment-page-1/#comment-836 digdowndeepnseattle Sat, 31 Jan 2009 12:23:03 +0000 http://www.secretfinance.com/blog/any-way-to-use-401k-to-help-pay-for-grad-school/#comment-836 way better off iwth student loan...interest rate is lower AND partially deductible. Further, the time period is extended out. A 401k loan is payable in only 5 years. Hefty payments to make while he's in grad school. At least the student loan payments don't start until you graduate. Do not take a distribution from your 401k for this....that 50k that you'll need will end up costing your retirement account about 500k. AND that's not including the penalty. way better off iwth student loan…interest rate is lower AND partially deductible. Further, the time period is extended out. A 401k loan is payable in only 5 years. Hefty payments to make while he’s in grad school. At least the student loan payments don’t start until you graduate.

Do not take a distribution from your 401k for this….that 50k that you’ll need will end up costing your retirement account about 500k. AND that’s not including the penalty.

]]> By: Faye H http://www.secretfinance.com/blog/any-way-to-use-401k-to-help-pay-for-grad-school/comment-page-1/#comment-835 Faye H Fri, 30 Jan 2009 20:12:21 +0000 http://www.secretfinance.com/blog/any-way-to-use-401k-to-help-pay-for-grad-school/#comment-835 You can borrow against it but there are limitations on that and you also have to pay it back by having it taken out of your check every payday. I don't think Grad school would be considered a "hardship withdrawal" which is the only other way I know of to take it out without paying the tax penalty. Personally, I think you'd be better off with a student loan than borrowing on a 401k. You can borrow against it but there are limitations on that and you also have to pay it back by having it taken out of your check every payday. I don’t think Grad school would be considered a “hardship withdrawal” which is the only other way I know of to take it out without paying the tax penalty.

Personally, I think you’d be better off with a student loan than borrowing on a 401k.

]]> By: dual_reality http://www.secretfinance.com/blog/any-way-to-use-401k-to-help-pay-for-grad-school/comment-page-1/#comment-834 dual_reality Thu, 29 Jan 2009 08:58:16 +0000 http://www.secretfinance.com/blog/any-way-to-use-401k-to-help-pay-for-grad-school/#comment-834 There's different rules for different circumstances. Here are the basics...scroll about 1/2 way down to withdrawls. There’s different rules for different circumstances.
Here are the basics…scroll about 1/2 way down to withdrawls.

]]> By: vsd1970 http://www.secretfinance.com/blog/any-way-to-use-401k-to-help-pay-for-grad-school/comment-page-1/#comment-833 vsd1970 Wed, 28 Jan 2009 23:21:27 +0000 http://www.secretfinance.com/blog/any-way-to-use-401k-to-help-pay-for-grad-school/#comment-833 depending where you have this 40K.. If it is through an employer, you can and should be able to borrow against it through payroll deductions. You will be given a check and then weekly deductions will be taken out unitl it is paid in full. the interest rate should be low. I have doen this in the past for home purchase depending where you have this 40K.. If it is through an employer, you can and should be able to borrow against it through payroll deductions. You will be given a check and then weekly deductions will be taken out unitl it is paid in full. the interest rate should be low. I have doen this in the past for home purchase

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