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The Motley Fool has a disclosure policy.
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 1:25 PM
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.
