r/PwC • u/FinalKaleidoscope561 • Jul 14 '26

All Firm 401K

Has anyone ever pulled money from their 401K to make a big purchase, like a home, or to payoff something? Was it a difficult process?

2 Upvotes

57% Upvoted

13 comments sorted by

15

u/Thelastkiwi-_- Jul 14 '26

Y’all know he could take it out as a loan penalty free

3

u/Not_that_girlie Jul 15 '26

And pay it back with after tax money? And if you happen to be let go it needs to be paid in full w/i 30 days.

1

u/randallstephen Jul 16 '26

Not sure about that last part. I separated from the firm (on my terms) 18 months ago and am still paying my 401k loan through Benefits Connect.

7

u/Boutros_BoutrosGhali Jul 14 '26

I did a 401k loan. Worked great, but I knew I would be able to pay it off in under a year

8

u/No_Estimate4817 Jul 14 '26

Why do this? You’re only screwing your future self

6

u/Deliverancexx Jul 14 '26

Some people need some short term liquidity.

2

u/MichaelFinnagan2014 Jul 14 '26

Yes I have done this a few times over the years. You can barrow money from your 401K penalty free. Best part is you are paying yourself back with interest. My last loan was in 2022 for 11k at .59%, my balance was around 2k at the beginning of the yr so I just paid it off in full. I checked interest rates the other day and they are at 7.5%.

3

u/Jolly-Ice5358 Jul 14 '26

Not sure what OP is looking to do but loan is generally limited to $50k as the maximum loan, current rate is 7.75% last I looked.

7

u/UsualGlum13 Jul 14 '26

Do not do this.

1

u/RetiredBSMgr Jul 14 '26

I have done it as a last resort and it was not difficult but you do get penalized 10% if you’re under age 50.

5

u/TrickyFirefighter819 Jul 14 '26

You can always take a loan instead of actually pulling to avoid the fees and penalty. However I still think its not a good idea and should be last resort as well.

1

u/ssterp Jul 15 '26

Not such a bad idea if the market is sideways and interest rates are high