Assuming you’re addressing qualified plans, the answer is yes, but you need to know the rule of engagement. Borrowing from a 401(k) is generally permissible, but there is a cost of borrowing. If you are terminated from employment or transfer of your 401(k) to an IRA, the plan may require repayment. There are penalties for non-compliance and the possibility that non-repayment may trigger an ordinary income tax event and in addition 10% penalty if you’re younger than 59 ½.
In Canada, you cannot borrow directly from your retirement plan. Also you cannot use your retirement plan as collateral for a loan. There is an indirect borrowing option with Retirement Compensation Agreement (RCA) where some lenders will use the refundable tax as collateral.
If you would like to work with a local Retirement Planner, you could start with a Google search. For example, if you search for: retirement planner Halifax or retirement planning Halifax, my name, along with several others, will come up. You can use the same method to find Retirement Planners in your community.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
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If you would like to work with a local Retirement Planner, you could start with a Google search. For example, if you search for: retirement planner Halifax or retirement planning Halifax, my name, along with several others, will come up. You can use the same method to find Retirement Planners in your community.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.