Ah 401-K loans started today in our company!

[musclecar_72]

I somehow got stuck with storing the paperwork for the 401-k loans. People are borrowing against their 401-k to buy things like dog lots, bass boats, and breast augmentations. We allow them to repay over 3 years. The thing I said would happen but was told by 401-k administrators wouldn't is going on in droves. The people who are borrowing are ceasing to make 401-k contributions (can change % Jan 1 and July 1st) because they can't afford to repay loan and make 401-k contributions. I'm waiting to see what happens in three years when these loans are paid off, I bet they will just borrow again.

These people are gonna work for years and never make another 401-k contribution but continually pay off these loans.

 

[Christine]

Our company gives loans also, but it is up to the disgression of the administrator and it clearly states in the employee manual that the loans are only given for "significant" life events such as buying a home, college education, or if something catastropic happens (a family member dies, house burns down, etc.).

I think your company is doing the employees a disservice by not being more strict about it.

 

[ducklite]

Stupid.

Most financial experts tell you the only thing to even consider touching your 401K for is education for yourself that will increase earning potential (not for your kids!); the purchase of a primary residence; life saving medical treatment.

I guess "breast augmentations" would fit in under the realm of increasing income potential if they are a pole dancer on the weekends...

Then when they are eating cat food or have to decide between their heart meication and heat during retirement, they'll be whining about it.

Anne

 

[kdibattista]

I guess "breast augmentations" would fit in under the realm of increasing income potential if they are a pole dancer on the weekends...

OMG... I really needed that laugh

 

[lowie]

I somehow got stuck with storing the paperwork for the 401-k loans. People are borrowing against their 401-k to buy things like dog lots, bass boats, and breast augmentations. We allow them to repay over 3 years. The thing I said would happen but was told by 401-k administrators wouldn't is going on in droves. The people who are borrowing are ceasing to make 401-k contributions (can change % Jan 1 and July 1st) because they can't afford to repay loan and make 401-k contributions. I'm waiting to see what happens in three years when these loans are paid off, I bet they will just borrow again.

These people are gonna work for years and never make another 401-k contribution but continually pay off these loans.

i'll be a dissenter here.. i don't know why you feel the need to judge why someone wants a loan against their 401k, you don't know why people want or need boats or ****s. these people are adults and it is their money. i say just do your job and don't play armchair psychologist.

 

[musclecar_72]

i'll be a dissenter here.. i don't know why you feel the need to judge why someone wants a loan against their 401k, you don't know why people want or need boats or ****s. these people are adults and it is their money. i say just do your job and don't play armchair psychologist.

When these people are zapping your and my SS benefits and running gov. sponsored programs broke because they are old and poor I'm sure your gonna contribute a little extra to cover it right? Didn't think so!

 

[mickeysgal]

When these people are zapping your and my SS benefits and running gov. sponsored programs broke because they are old and poor I'm sure your gonna contribute a little extra to cover it right? Didn't think so!

Yup!

 

[Lisa loves Pooh]

When these people are zapping your and my SS benefits and running gov. sponsored programs broke because they are old and poor I'm sure your gonna contribute a little extra to cover it right? Didn't think so!

ITA!

 

[rkrivas]

Not sure if your company can modify its procedures, but several of my clients (I work in employee benefits administration) charge administration fees on 401(k) loans to prevent people from borrowing for more frivolous reasons. There's also sometimes minimums of $1000.

 

[Nancy]

i'll be a dissenter here.. i don't know why you feel the need to judge why someone wants a loan against their 401k, you don't know why people want or need boats or ****s. these people are adults and it is their money. i say just do your job and don't play armchair psychologist.

I'm more upset over the fact that the OP is LOOKING at the loans, not too ethical in my books It really is no ones business why they borrowed against their 401 K...it is THEIR money right? They pay the loan back to the account, it's not lke they are defaulting and going bankrupt over it.

And as for needing government handouts or benefits when they retire, there is a good chance that for a lot of us that will be a good case scenario, because no matter how much we sock away with the rising costs I don't ever see it being enough.

 

[Chicago526]

i'll be a dissenter here.. i don't know why you feel the need to judge why someone wants a loan against their 401k, you don't know why people want or need boats or ****s. these people are adults and it is their money. i say just do your job and don't play armchair psychologist.

Except that you and I will be paying for their poor choices 40 years from now when these people have to live on welfare and Medicaid because they decided a boat was more important at the time.

 

[Chicago526]

And as for needing government handouts or benefits when they retire, there is a good chance that for a lot of us that will be a good case scenario, because no matter how much we sock away with the rising costs I don't ever see it being enough.

Actually with proper planning, saving, and investing, the vast majority of people should be able to fund their own retirements completely. They may not be jeting off to Europe every summer while retired, but they'll be able to live comfortably.

 

[Lisa loves Pooh]

I'm more upset over the fact that the OP is LOOKING at the loans, not too ethical in my books It really is no ones business why they borrowed against their 401 K...it is THEIR money right? They pay the loan back to the account, it's not lke they are defaulting and going bankrupt over it.

And as for needing government handouts or benefits when they retire, there is a good chance that for a lot of us that will be a good case scenario, because no matter how much we sock away with the rising costs I don't ever see it being enough.

OP got stuck storing them--but you don't know what they have to do to do that.

And you do have someone in your company that is privileged to the information you provide on the 401K loan paperwork.

 

[mrsltg]

I'm more upset over the fact that the OP is LOOKING at the loans, not too ethical in my books It really is no ones business why they borrowed against their 401 K...it is THEIR money right? They pay the loan back to the account, it's not lke they are defaulting and going bankrupt over it.

And as for needing government handouts or benefits when they retire, there is a good chance that for a lot of us that will be a good case scenario, because no matter how much we sock away with the rising costs I don't ever see it being enough.

I agree. You shouldn't be reading over the documents for personal interest (though I can understand curiosity) but you definitely shouldn't be posting your finding to a public internet BB. You've got an HR nightmare waiting to happen here.

 

[Nancy]

Our 401 K's are handled by an outside company, no one where I work sees anything except for the payroll department that does my check. We took out a laon from our 401 K to purchase our car, nowhere on the request form did it even ask what we needed the money for. Of course we never stopped putting money into the 401 K while we were paying off the loan.

I still don't know why if they were just storing the info (which to me is filing paperwork) why the OP would have to know all the details of the loan...but maybe I'm missing something and all the info is being entered into a database or something.

 

[Missy1961]

I agree. You shouldn't be reading over the documents for personal interest (though I can understand curiosity) but you definitely shouldn't be posting your finding to a public internet BB. You've got an HR nightmare waiting to happen here.

I've got to agree. And I hope you're not using a company computer to do this posting.

 

[Free4Life11]

Gee, maybe someone said "I'm so glad they have the 401K loans! Now I can get that boat I've been wanting..." Could be that the OP and her coworkers talk to one another and this came up. Anyways who cares if she posts? It's not like shes posting names and numbers.

 

[musclecar_72]

I'm more upset over the fact that the OP is LOOKING at the loans, not too ethical in my books It really is no ones business why they borrowed against their 401 K...it is THEIR money right?

Nancy is just mad because the breast augmentation loan was hers!

 

[kdibattista]

I don't remember having to fill out anything stating what the purpose was when I took a loan out a few years back for our house... I can't imagine anyone putting **** job either

 

[Chicago526]

I don't remember having to fill out anything stating what the purpose was when I took a loan out a few years back for our house... I can't imagine anyone putting **** job either

Differant 401k plans have differant requirements, I guess. But I wouldn't put **** job on my application either!

BTW, your dog looks exactly like mine! My Missy is a black lab/border collie mix. What breed is your dog?