IF you are wise, you DON’T !!! But, if you feel that you must, simply check with your personnel department and they will provide you with the proper forms.
Actually, I believe you contact the company administering your benefits/retirement. You then ask if there is the ability to borrow from your own money and if you can, tell them the amount you want to borrow. They will in turn tell you the fees and tell you various amounts that can be deducted directly from your check to pay it back. That will depend on how long you want to pay back the amount removed. Believe me, been there done this!
Do Not Borrow from your Lincoln Retirement Plan!!!!!!
Very bad idea. You will have to pay taxes on the money you borrow twice. Don’t do it. Ask yourself, Do I really need this big ticket item, Will I die without it?
IF your plan allows (which it might not!) then you can request a loan from the plan. Talk to your human resources department. If your plan is a 401k or profit sharing plan, then your chances are better. “Pension Plans” which give you a monthly benefit at retirement are less likely to allow loans.
There are limits to what you can borrow, I recall 50% of your balance, up to 50,000 (I might be wrong on this one!)
You also have to pay the loan back, sometimes with paycheck deductions. If the loan is not paid back, it is considered a withdrawal, and you have to pay taxes on the amount. So if you borrowed $10,000 and didn’t pay it back, you might have an extra $3-4000 in taxes due that you didn’t realize.
Talk with your tax guy, or accountant before doing this. It can be a good idea, but is usually a bad financial move.
Comments on How do I borrow from my retirement plan a work?
Hadley
Not all companies allow you to “borrow” from your retirement plan. You need to contact your Human Resources department.
If you don’t want to do that…here is Lincoln Financial Group’s direct number… give them a call.
Emily
IF you are wise, you DON’T !!! But, if you feel that you must, simply check with your personnel department and they will provide you with the proper forms.
Jayla
no
Hannah
Actually, I believe you contact the company administering your benefits/retirement. You then ask if there is the ability to borrow from your own money and if you can, tell them the amount you want to borrow. They will in turn tell you the fees and tell you various amounts that can be deducted directly from your check to pay it back. That will depend on how long you want to pay back the amount removed. Believe me, been there done this!
Tanya
Do Not Borrow from your Lincoln Retirement Plan!!!!!!
Very bad idea. You will have to pay taxes on the money you borrow twice. Don’t do it. Ask yourself, Do I really need this big ticket item, Will I die without it?
Amelia
IF your plan allows (which it might not!) then you can request a loan from the plan. Talk to your human resources department. If your plan is a 401k or profit sharing plan, then your chances are better. “Pension Plans” which give you a monthly benefit at retirement are less likely to allow loans.
There are limits to what you can borrow, I recall 50% of your balance, up to 50,000 (I might be wrong on this one!)
You also have to pay the loan back, sometimes with paycheck deductions. If the loan is not paid back, it is considered a withdrawal, and you have to pay taxes on the amount. So if you borrowed $10,000 and didn’t pay it back, you might have an extra $3-4000 in taxes due that you didn’t realize.
Talk with your tax guy, or accountant before doing this. It can be a good idea, but is usually a bad financial move.
Adriana
I do not know