Who Gets The 401K Loan Interest? 
When you take a loan from your 401 -LRB- k -RRB- , as you know , you start to incur interest on the loan amount . The beautiful thing here is when you pay your loan back , you are paying yourself back the interest . So in the long run , it is to your benefit to make sure you pay that loan off plus interest . Remember , if the account is closed , and you get a check for the remaining balance , you will end up having a tax consequence to deal with this year . 