| A | B | C | D | E | F | G | H | I | J | |
|---|---|---|---|---|---|---|---|---|---|---|
1 | Option 1: 401(k) loan | Option 2: 3rd-party loan | ||||||||
2 | Cash | 401(k) | Taxes paid | Cash | 401(k) | Loan originator | Taxes paid | |||
3 | 2016/01/01 | Year's wages | $100,000 | Year's wages | $100,000 | |||||
4 | 2016/01/02 | 401(k) contrib | -$18,000 | $18,000 | 401(k) contrib | -$18,000 | $18,000 | |||
5 | 2016/12/31 | Pay taxes | -$14,760 | $14,760 | Pay taxes | -$14,760 | $14,760 | |||
6 | EOY balance | $67,240 | $18,000 | $14,760 | $67,240 | $18,000 | $0 | $14,760 | ||
7 | 2017/01/01 | Year's wages | $100,000 | Year's wages | $100,000 | |||||
8 | 2017/01/02 | Take out loan | $10,000 | -$10,000 | Take out loan | $10,000 | -$10,000 | |||
9 | 2017/12/31 | Pay taxes | -$18,000 | $18,000 | Pay taxes | -$18,000 | $18,000 | |||
10 | EOY balance | $159,240 | $8,000 | $32,760 | $159,240 | $18,000 | -$10,000 | $32,760 | ||
11 | 2018/01/01 | Year's wages | $100,000 | Year's wages | $100,000 | |||||
12 | 2018/01/02 | Repay loan | -$10,000 | $10,000 | $0 | Repay loan | -$10,000 | $10,000 | $0 | |
13 | 2018/12/31 | Pay taxes | -$18,000 | $18,000 | Pay taxes | -$18,000 | $18,000 | |||
14 | EOY balance | $231,240 | $18,000 | $50,760 | $231,240 | $18,000 | $0 | $50,760 | ||
15 | 2027/01/01 | Withdraw 401(k) | $18,000 | -$18,000 | Withdraw 401(k) | $18,000 | -$18,000 | |||
16 | 2027/12/31 | Tax on distribution | -$3,240 | $3,240 | Tax on distribution | -$3,240 | $3,240 | |||
17 | EOY balance | $246,000 | $0 | $54,000 | $246,000 | $0 | $0 | $54,000 | ||
18 | ||||||||||