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What to Know Before Taking a 403(b) Loan

A 403(b) loan should be your last resort because it comes with major problems and risks.

By Motley Fool Retirement Team – Updated Nov 23, 2024 at 1:25PM

Key Points

  • 403(b) loans offer access to funds without a credit check and favorable terms compared to other loans.
  • Repayments on a 403(b) loan do not count toward annual contribution limits but are made with after-tax dollars.
  • Failing to repay a 403(b) loan can result in heavy penalties and taxes, akin to an early withdrawal.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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