You paid taxes on the same money twice. Going in and coming out. Dispute that
Unless you go over the limit you should be able to put all you want in your 401k. Either saving or paying a loan back. After all it’s your money and up to the limit it should be your choice.
I’m not denying any such thing. I’m stating a fact that you can’t argue. It’s simple and its true. Money in, money out, same money taxed both ways.
Maybe not to you but it makes a lot of sense to me. You would come out a lot better that way. Why would you be against this??
I’m saying I should be able to pay it back with pre tax money as long as I don’t exceed the limit each year so I’ll only be taxed once like it was set up to be. That’s all
Have you looked around lately? The country does suck. No amount of spending or taxes can fix what’s going on in this dumpster fire we have now.
it’s a loan not a withdrawal. No taxes should be taken. Argue that point
Yeah I know the rules. I’m saying you should be able to put it back pre tax if you stay under the cap.
Wrong. You have 5 years to pay back the loan. So that would be a max loan of 97,500. No one should need that much unless you just suck at life in general but it would work if you did.
You could deduct it all. Loan payment and savings up to 19500 or 26000 if your over 55
Sure it would. I maxed out my cap the last two years with contributions but that’s only because I’m retiring this year and didn’t need any income. 19,500-26,000 per year is a lot. Most only put in 6-15% so there is plenty of room to both pay a loan and contribute without coming close to the cap. SEP’s have and even higher cap of 58k per year or 25% of your income so there’s always a way if you have a business on the side.
Nope. I’m arguing that I am entitled to 19500-26000 Per Year for my 401k. I’m not withdrawing anything I’m taking a loan out and replacing it. So how I use my allotted 401k contribution should not matter.
Oh and btw the government does tax your money over and over many times. When you get paid, when you spend it, when you buy property they tax it each and every year, that never ends. Your money gets hammered every time you reach for it after it’s been taxed from your paycheck. So that argument is moot.
Not I’m not for taking loans against your 401K unless things turned upside down and the rate was significantly better than what you could get on the open market as compared to the market return on your 401K. But, what do you mean “double taxed?” You are borrowing pre-tax dollars, paying with post-tax dollars (like any other loan), and the 401K doesn’t become taxable until retirement withdrawals - lust like all the 401K funds. The bad thing is if you default or must stop paying, then the loan becomes a a pre-retirement withdrawal subject to penalties and taxing at current income levels, which is the biggest risk.
Sounds like your living clean! Good for you. With that being said why would you need to borrow money? I always max out my 401k, Roth and SEP every year as does my wife. We haven’t borrowed money or paid a penny in interest since we built our first home in 87. Cash is king.
