HI neco
Reguardless of what the retirement plan is called, if it is thru the employer, the employer chooses the financial institution thru which the investments are made. Within the plan you have certain investment choices from very few but good ones with TIAA CREF to everything and anything with some plans.
If it is a 403b thru a government or non profit, it probably does not have a matching contribution in which case I would suggest she max out an IRA first and preferably a ROTH IRA.
Whether she can borrow from the plan depends on the rules of that particular plan but in general I will say it is a HORRIBLE idea to borrow money front the plan.
If ANYTHING goes wrong you lose 30% or more to taxes. Anything can be not being able to keep up with payments to leaving or losing the job after taking the loan out, or the employer screwing up the paperwork.
If you don't pay the loan back in time there is a 10% penalty, you pay tax on it at your highest tax rate, and it may even push you in to a higher tax bracket. It can also reduce certain tax credits because you have more income.
But don't listen to me, I was only a tax preparer for 16 years.
Not always
Toofuzzy
Take the road less traveled. It will make all the difference.
