Core Viewpoint - Taking a loan from a 401(k) is highly discouraged due to the implications of double taxation and opportunity costs associated with the borrowed funds [1][2][6]. Group 1: Tax Implications - Borrowing from a traditional 401(k) means repaying with after-tax dollars into a pre-tax account, leading to double taxation when funds are withdrawn [2][7]. - If an individual loses their job before repaying the loan, the remaining balance will be taxed as ordinary income, plus a 10% penalty if under the age of 59.5 [3][7]. Group 2: Opportunity Costs - The opportunity cost of a 401(k) loan is significant, as it equates to the lost growth on the borrowed funds. For instance, if the account has an 8% total return, the effective cost of the loan is also 8% [6][7]. Group 3: Alternative Options - Financial experts recommend exploring other options, such as home equity loans or personal loans, before considering a 401(k) loan. Consulting with a financial advisor is advised to avoid financial missteps [4][5].

LATEST: 🇺🇸 A bipartisan group of US lawmakers is asking the IRS to update its crypto staking tax rules before 2026, arguing for the end of "double taxation," where taxes are applied both when receiving staking rewards and when selling them. https://t.co/JKu2EFefuw ...

Regulatory Landscape - Michael Saylor and Sen Cynthia Lummis are advocating for the elimination of double taxation on Bitcoin miners and stakers [1] - The current double taxation is considered an impediment to the United States' leadership in the cryptocurrency sector [1] Industry Impact - Removing double taxation could foster growth and innovation within the US crypto mining and staking industries [1]