Search Knowledge Base by Keyword
Taxpayers Guide to LLCs and S Corps
Expat and Expatriate KB
Rental Property KB
Other Tax Information KB
Small Business KB
- Articles coming soon
401k Loans and Life Insurance
By Jason Watson, CPA
Posted Saturday, November 5, 2023
401k plans may have loan provisions. This means you can borrow up to 50% of the account balance with a 2024 tax year hard ceiling of $50,000 (or 50% of $100,000+). This limit has not changed for several years. You are basically paying yourself interest on the loan.
401k plans can also buy life insurance, which is a neat way of deducting your life insurance premiums since the money going into the 401k plan may be pre-tax. There are all sorts of rules and limitations, but you should be aware of this option.
Taxpayer's Comprehensive Guide to LLCs and S Corps 2023-2024 Edition
This KB article is an excerpt from our 400+ page book (some picture pages, but no scatch and sniff) which is available in paperback from Amazon, as an eBook for Kindle and as a PDF from ClickBank. We used to publish with iTunes and Nook, but keeping up with two different formats was brutal. You can cruise through these KB articles online, click on the fancy buttons below or visit our webpage which provides more information at-