Re @socaldad2002 #7
This is a misconception that I have read a lot.
If you take ANY loan from ANYWHERE, you have to pay it back with after tax dollars. So a 401k loan should be considered as comparable to any other loan - based on its terms - if there are any loan fees, is the interest rate comparable and fair, etc.
The 401k loan means you are essentially locking a portion of your 401k plan to be earning a set interest rate - that you are paying back. But if you took the same loan from your HELOC you’d still be paying that amount with after tax dollars. If you took a PLUS loan from a bank, you’d still pay it back with after tax dollars. Why do I frequently hear people expect that loan repayments should be pre-tax as well.
If your liquid assets are low and you need to take a loan, you are not alone. Once you are in a position that you need a loan, then you should be comparing the options available at the time…
I like the suggestion that @6same7 made in post #15 - and OP may find that some combination of both 401k loans and HELOC withdrawals will be best - depending on the terms.