401(k) Loans - Borrowing from Your Retirement
Here's what you need to know about borrowing from your 401k.
- The maximum 401k loan amount is 50% of the account balance - up to $50,000.
- 401k loans must be repaid within 5 years, any funds not repaid on time incur a taxable event.
- Borrowing from your retirement account may result in missed investment opportunities.
You've worked hard to contribute to your retirement. Deciding to borrow from your 401k requires much contemplation. There are benefits to borrowing from your plan, but all 401k loan alternatives
should be explored before making a decision.