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The downside of a 401(k) loan? You’re borrowing out of your foreseeable future self, which lessens your retirement nest egg and its advancement inside a tax-advantaged account. And if you allow your career ahead of the funds are repaid, you will have to repay the remaining harmony promptly to avoid penalties.
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Fees can increase up — Avant’s loans may well include an administration charge, in addition to late service fees and dishonored payment expenses.
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