Reader comments
Don't borrow from 401(k) to pay mortgage

It is very discouraging to see that financial professionals appear to follow each other like sheep when it comes to the idea of double taxation if one borrows from their 401k account. It is logically wrong and mathematically impossible to think that way. If you borrow $1000.00 from your 401k account, you get that whole $1000.00 tax-free. You get to spend that all that money--all of it. You pay back the money plus interest with your after-tax money. It is exactly the same with borrowing $1000.00 from the bank. If you are taxed by borrowing from your 401k, for example, you get $900.00 when borrowing $1000.00, then yes, you are being double-taxed.