Question On Using 401K

[Shaun Skeffington]

Hey Everyone.. My wife has a 401K plan she had with her previous employer and does not work anymore. We called the investment company that has it and stated we cannot borrow against it due to her not working anymore. Is there anyway we can use this money and pay it back without getting taxed on it? Thanks for your help!

[Dmitriy Fomichenko]

@Shaun Skeffington is referring to called 60-days rollover, not a loan. Basically the rules allow you to take a distribution from your 401k and as long as you deposit those funds into an IRA within 60 days - you will not be taxed. I would not recommend using this strategy because if you are 1 day late - you will be taxed and penalized.