401K Credit Cards

Everyone understands how a traditional debit card, works: you withdraw money and make charges against the money you actually have in your bank account. Do you know about 401K debit cards?

These cards allow accountholders to withdraw money from your own 401K account, with permission from your employer, instead of the typical “loan” some people would get from their 401K plans.

A 401K debit card is actually more closely related to a credit card than a debit card, because you end up paying for a large number of fees and penalities for the priviledge of using a debit card linked to your 401K account.

How do 401K debit cards work?

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