How did they end up handling 401k loans?
Did they make everyone pay them all back on exit?
8 replies (most recent on top)
So most of the people in here have no idea how it works. Taking a loan out where you pay Fidelity $50 for the loan setup and yourself interest back over the period you took out the loan is the best financial decision you can make in this situation. When you leave they just restructure the payments and you provide a bank account to draft it from.
It was the the most cost effective solution at the time when interest was way higher I paid myself back 4% interest for my 401k loan after leaving Cisco.
Best decision I ever made hands down was to walk away from the mess called Cisco. Been taking your customers like taking candy from a baby ever since I left.
If you have a 401k loan, you are automatically fired for being a du----s:::
Cancer treatment over several years for a spouse tends to drain saving. Not everything is covered by insurance. Is a loan ideal, no. Is it necessary right now, yes.
seriously 401k loan is just about the worst financial decision you can make. do yourself a favor and go work at a gas station
If you have a 401k loan, you are automatically fired for being a du----s
The rules around 401(k)'s are regulated by the IRS and are the same for ALL companies.
Just leave your 401(k) with the financial institution that Cisco is partnered with and keep making the payments on the loan. Or pay it off and transfer the 401(k) to the financial institution of your choice.
I don't understand why someone would need to ask this about Cisco's 401(k) plans.
I have no idea what your financial situation is but I have never seen anybody borrow against themselves (401k loan, home equity loan) and it work out for the better.
My advice is to avoid it at all costs, if possible.
You go into the fidelity net benefits account area online where your loan is called out, and there is an option to enroll a current checking/savings account to establish monthly payments where you had been getting them previously from your paychecks. Then all continues as normal.
It’s pretty common with company sponsored 401ks to require loan repayment after separation, so I’d say yes.