EMERGENCY MONEY DISCUSSION, PT 2:

i'm not 100% sure about this.

 

i have not been able to research whole-hog because i've been working piece-meal/sporadically----which i suppose is a good thing considering the awful situation.

One thing i did pickup is that there are new rules, recently enacted due to the virus concerning withdrawing/borrowing from a 401K (which i know is generally not a good thing....however, some of the revised rules may slightly change this)

One thing, concerning the above that nobody is addressing is, how will you pay it back? i vaguely understand that at least one way is thru payroll deduction. BUT, is this pre-tax payroll deduction, or after tax deduction?

If pre-tax, maybe not such a bad deal. If after-tax, really doesn't seem like such a good idea.

 

P.S.
Can't file for unemployment because i'm too busy working and then too tired when i get back home.

Probably won't be able to do much Saturday because there's a good chance i'll be doing linehaul.

 

Yes, i'm in a precarious situation-----i worry that i WILL be out of work soon (and in fact only worked 3 days the previous week to last and 4 days last week) YET i still work sporadically and sometimes LONG hour days----so when i get home i go immediately to bed literally after using the bathroom........

So, there's not much time to research other jobs and unemployment benefits.

 

Yes, and i hear you get 5 years to pay it back. If the repayment is with pre-tax contributions then this seem like a good deal. Hell, it should be like this ALL the time.

If there's time, i will email Clark Howard. Or anyone here could do it?

If you repay with after-tax dollars, then you've essentially lost the advantage of a 401K----you are now going to pay taxes TWICE on your money-----the first time with repayment contributions and then when you finally withdraw it come retirement---and likely the tax rates will be higher when you retire. NOT a good deal.