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can i borrow from my 401k to pay attorney fees

Posted on: 22nd Feb, 2010 05:48 pm
My paycheck is being garnished and it is causing me to get behind on rent and other utilites, I ask my employer for a hardship loan and she wanted proof from my landlord that I am behind on rent, Is that really necessary?
Hi bogansonya,

Rules and regulations may vary from one employer to another. I guess your employer wants a proof of your hardship before letting you take a loan from the 401k account. That's the reasons why she must be asking for a proof from your landlord. You can ask your landlord to give a letter stating that you are unable to pay off the rent due to financial crisis. This may help you get a loan from your 401k account.

Thanks
Posted on: 22nd Feb, 2010 07:50 pm
Hi Bogansonya,

It totally depends on the employer. If she is asking for the rent receipt then you have to provide that in order to get a loan from 401k account. This is actually a proof to know that you are really running through hardship and cannot afford paying your rent. You can ask your landlady who can write that you are not paying the rent for these many number of months.
Posted on: 03rd May, 2010 07:28 am
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