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Posted by Harlan Lunsford on August 5, 2007, 4:16 pm
Please log in for more thread options Marty wrote:
> Can a person apply for an equity line of credit to pay off a
> 401k loan if one loses his(her) job. The 401k loan is
> already reality with 3 years left on the balance. Losing
> the job could be in two months, two years, in between, or
> never.
>
> I know the key would be to take out the line before one
> loses the job. Right? Are their any fees (upfront or
> annual) involved if one ends up not using the line?
>
> Is a Heloc tax deductable? Can a Home Equity loan work for
> this purpose also? I thought you had to prove to the bank
> that a home equity loan was for home improvement to get the
> deduction. Am I wrong? Thanks
That is an excellent plan of attack, Marty, one I wouldn't
hesitate to recommend to a client. Trouble is, last year,
this married couple didn't ask me in time and they each got
one humongous 1099R form when their textile plant closed.
ChEAr$,
Harlan Lunsford, EA n LA
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