Legal Question in Tax Law in California

401(k) quickies

Hello,

I have 2 questions:

1. Should I pay off in full the 401k loan amount of $18000 that I used to buy my first home or should I continue to pay it down slowly with every paycheck received from my employer?

2. I was told by a CFP that I should NOT contribute the maximum 15% of my pay into a 401(k), but to only match the contribution made by my company. Do you agree? Why?


Asked on 11/26/04, 10:17 pm

1 Answer from Attorneys
Donald Field Donald L. Field, Jr., Attorney at Law

Re: 401(k) quickies

Your questions relate to investment decisions rather than tax issues, which are only one element. In any case, the tax advantages or disadvantages depend upon your specific situation and cannot be answered correctly or completely without a review of your tax return and your current financial statements.

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Answered on 11/27/04, 11:23 am


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