Using a 401(k) Loan to Cope With Coronavirus Costs
The Coronavirus Aid, Relief, and Economic Security Act of March 2020 doubles the amount retirement savers can borrow from a 401(k) plan. But that doesn't necessarily mean you should raid your future retirement savings, even during the coronavirus pandemic.
"If we weren't in this crisis moment that we are in today, typically I would advise not to be tapping into your 401(k)," says Rhian Horgan, CEO and founder of the retirement planning platform Kindur in New York City. "That money is your future paycheck. Those funds will not be growing while money is out of your account."