HenryKringle6000 t1_j6okoev wrote

If they didn’t credit you for the money you gave them then they stole from you.

But, I would double check … because $4k will barely cover the taxes and fees these days. Is it possible the $4k was applied but none of it actually went towards the base cost of the car itself?


HenryKringle6000 t1_j2ct2dm wrote

Let’s say you put $10k pre-tax dollars into your 401k.

Then you take a $10k loan out. The loan repayments come out of the post-tax part of your paycheck. Aka, now you are putting taxed dollars back into the 401k to replace the pre-tax dollars you took out.

When your loan is over you put in $10k to repay the loan… but it was no longer tax free. The repayments weren’t pre-tax dollars. You paid taxes on those dollars.

Now, when you retire and pull the 401k money out you will pay tax on that $10k again. That’s double taxation.


HenryKringle6000 t1_j2cp30t wrote

No. Taking out a 401k loan is almost always a bad option. They seem like a good deal … you borrow money from yourself and pay yourself interest.

Here’s the catch… you put money into the 401k pre-tax and then you pay tax when you eventually pull it out many years from now. When you pull out the loan from your 401k that is not taxable. But, the money you are using to pay back the 401k loan is post tax dollars.

Aka, you end up paying taxes TWICE on the same dollars. That’s very very expensive.