13 Dic Detractors together with believe 401(k) financing payments is actually double taxed because they’re paid off that have once-tax cash
A portion of the disagreement facing borrowing regarding a 401(k) try destroyed resource go back. The money borrowed was reduced which have a fixed amount of notice rather than a possibly higher return of inventory and you may bond opportunities. Although this is technically correct into desire repayments to the 401(k) finance, that it disagreement try still irrelevant. Finance try paid back that have once-income tax bucks regardless of whether he could be 401(k) funds otherwise loans from banks (home loan and you may family equity financing was conditions).