Depending on your plan's terms, you may be able to borrow at a lower rate from your account than you could from a bank or other lender, especially if you have a low credit score.
At the very least, you should check with your plan administrator to learn whether this option makes sense for you before you cash out.
The process sounds easy enough, but there are some key rules to follow.
Best practices should be considered before simply dividing your retirement accounts in half.
For example, if you are 45, your ,000 will grow to ,855 in 17 years.
Keep in mind that even if you really need the money, you may be better off borrowing from your 401(k) than cashing it out.
When considering a 401k, this may not be the best solution for many reasons.
Too often couples focus on the weeds rather than on the forest.
How you address your finances during divorce has consequences which last a lifetime.
One of the most common decisions during divorce is the division of your (and/or your spouse’s) 401k.
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Money is often a key consideration during your divorce process.