So You Want to Borrow From Your 401(k): A Hilarious (But Also Serious) Guide (Brought to You by Ramen Noodles and Rent Prayers)
Let's face it, adulthood is expensive. Between that leaky faucet that sounds like a banshee and the sudden urge to finally explore that exotic location named "Not My Parents' Basement," your bank account is doing the Macarena – and not the fun kind.
Enter the tempting siren song of a 401(k) loan. It's like a financial sugar daddy whispering sweet nothings about finally getting that new phone (because the one you hold together with duct tape is practically a fire hazard). But before you go all "Beam me up, Scotty, I need cash!" on your retirement savings, let's pump the brakes and approach this with the seriousness of a mime at a funeral.
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| How To Borrow From Voya 401k |
Why Voya? Why Not?
QuickTip: Slow down when you hit numbers or data.
First things first, this guide is specifically for those brave souls who have their 401(k) with Voya. If you're with another financial institution, don't fret, internet friend! A quick Google search with the magic words "borrowing from [your 401k provider] 401k" should set you on the right path.
But Voya, you ask? Well, because they have a catchy name that sounds vaguely like a yoga pose, and that's the kind of positive energy we need when dealing with finances.
QuickTip: Focus more on the ‘how’ than the ‘what’.
The Nitty Gritty: Can You Even Borrow?
Now, before you get too excited about the prospect of pina coladas on the beach funded by your future self, here's a reality check: not everyone qualifies for a 401(k) loan.
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Here are the not-so-fun eligibility requirements (courtesy of Voya's website, the fine print ninjas):
QuickTip: Pause after each section to reflect.
- Be a current employee. This one's kind of a no-brainer. You can't borrow from your work retirement plan if you don't work there anymore.
- Have at least $2,000 vested in your account. Vested basically means it's yours to keep, even if you leave the company. So, if you're fresh out of the nest, this might not be an option for you yet.
- Meet the loan amount limits. Voya has its own rules about how much you can borrow, and it's not a blank check situation. We'll get into the nitty-gritty of that later.
Alright, I Qualify. How Do I Borrow Without Turning My Future Self into a Ramen-Eating Hermit?
Okay, so you've hurdled the eligibility hurdle. Now comes the actual borrowing part. Here's a step-by-step (with a dash of humor) guide:
- Channel your inner detective and research, research, research! Voya's website and your plan documents are your best friends. Read them carefully, because knowledge is power, and financial literacy is the ultimate weapon against bad decisions.
- Figure out how much you actually need. Remember, this is a loan, not a free money fountain. Borrowing more than you can comfortably repay is a recipe for financial disaster (and a future you where ramen becomes your best friend).
- Gear up for the loan application process. This might involve online forms, phone calls, and maybe even a dance-off with a loan officer (not really, but it can feel that way sometimes).
- Repay diligently, grasshopper! Missing payments can lead to disastrous consequences, like the loan defaulting and seriously messing up your credit score. Remember, your future self will thank you for being responsible.
Remember, borrowing from your 401(k) should be a
Tip: Read aloud to improve understanding.
last resort, not your first option.
It means taking money away from your future retirement, which could mean brown bag lunches and public transportation when you're supposed to be sipping margaritas on a beach somewhere.The final word? Tread carefully, weigh the pros and cons, and consult a financial professional if you're unsure. They can be your financial guru, guiding you through the murky waters of 401(k) loans and helping you make the best decision for your future (and your sanity).
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