401K loan repayment vs. contributions

[7zcata]

What is the name of your state (only U.S. law)? MS
I have a problem but it's a good one... A year ago I borrowed on my 401K and ceased making contributions. I'm in better financial shape now and wanted to renew efforts to increase retirement savings. For any extra $$ I have per month slated for retirement should I: a) put it towards the 401K loan b) make scheduled loan payments but begin making 401K contributions with it c) put it toward other debt and begin contributions later when my overall debt burden is lower. Any thoughts are greatly appreciated.

 

[cbg]

What does your plan document say you can do?

 

[Hot Topic]

The smart thing to do would be to direct your questions to your financial advisor. The last thing you should have done was to take money from your 401(k).

 

[OHRoadwarrior]

I would base my decision on the amount of money you want to put away. Your yearly contribution limit, if not used , is gone for the year. The loan, on the other hand is costing you a small amount of interest. This will be potentially offset, by tax savings, if you contribute.

 

[FlyingRon]

The smart thing to do would be to direct your questions to your financial advisor. The last thing you should have done was to take money from your 401(k).

It was a loan not a withdrawal.

First you want to make the repayments under that loan term.

Unless you have some corporate match that making contributions will improve, you are best served most likely by accelerating repaying the loan. Presumably you can get better ROI on the money in the plan that is invested other than your loan (either that or you are paying too much interest on the debt).