Row 48415

Row ID: 48415 | Dataset Entry | Axioma AXP Content Repository

Content Data

This page contains data entry 48415 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

Yes, you pay tax on the interest that you pay yourself and then you pay tax again on that interest when you withdraw it. So there is *some* marginal cost to taking a 401(k) loan. Of course, if you paid interest to someone else, it would be a much higher cost than paying your tax on the interest that you get to keep (and which grows tax deferred in the account, so you technically could still come out ahead vs. the same money being invested in a brokerage account).

But you don't pay tax on the $50k twice.

FieldValue
text Yes, you pay tax on the interest that you pay yourself and then you pay tax again on that interest when you withdraw it. So there is *some* marginal cost to taking a 401(k) loan. Of course, if you paid interest to someone else, it would be a much higher cost than paying your tax on the interest that you get to keep (and which grows tax deferred in the account, so you technically could still come out ahead vs. the same money being invested in a brokerage account). But you don't pay tax on the $…
label r/investing
dataType comment
communityName r/investing
datetime 2024-05-22
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url_encoded Z0FBQUFBQm5Lak9na2Y3Uy1xdEM0MFpHR2ZiN2ptN29DY1dhR2w1MXV1SktMMEdJd0N4Y1JWNVFQVHVmb3lmLUE1NXpMdWZiTDVITW9KSHVsdnNHNjZ2dm9RZjFBQWc3YkpUVGI2eFRuNXhUeERxRmhNSWUzcFdVM0djSVltMW00a1d3RzFGTE90X2RXYUVvaGZDaGNVY0ZNYnlkZ2ZfajY3LVhtYlRtR2VpcHFCVy1wa1hZY29sN0RJN2h2VW9WTkJ0djI2dXVzTWkyUGU0N3ZYMzFyZVAtV1R6Y1VWOVZTQT09

Raw Record

{
  "text": "Yes, you pay tax on the interest that you pay yourself and then you pay tax again on that interest when you withdraw it. So there is *some* marginal cost to taking a 401(k) loan. Of course, if you paid interest to someone else, it would be a much higher cost than paying your tax on the interest that you get to keep (and which grows tax deferred in the account, so you technically could still come out ahead vs. the same money being invested in a brokerage account).\n\n\nBut you don't pay tax on the $50k twice.",
  "label": "r/investing",
  "dataType": "comment",
  "communityName": "r/investing",
  "datetime": "2024-05-22",
  "username_encoded": "Z0FBQUFBQm5Lak1SNTNURGpqY0I0dkE3T0lpTHRER09OT05IaGJkR21rbFBWNWVueGFtSnkxTnNNeDB2OElTQjZoeE1laGVBUWE0TUd4S3V2TVFlV0ZfeE5kZHRDdmtGR0E9PQ==",
  "url_encoded": "Z0FBQUFBQm5Lak9na2Y3Uy1xdEM0MFpHR2ZiN2ptN29DY1dhR2w1MXV1SktMMEdJd0N4Y1JWNVFQVHVmb3lmLUE1NXpMdWZiTDVITW9KSHVsdnNHNjZ2dm9RZjFBQWc3YkpUVGI2eFRuNXhUeERxRmhNSWUzcFdVM0djSVltMW00a1d3RzFGTE90X2RXYUVvaGZDaGNVY0ZNYnlkZ2ZfajY3LVhtYlRtR2VpcHFCVy1wa1hZY29sN0RJN2h2VW9WTkJ0djI2dXVzTWkyUGU0N3ZYMzFyZVAtV1R6Y1VWOVZTQT09"
}
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