Can I Borrow Against My Retirement Plan? 
Can I borrow against my retirement plan ? With some plans , yes you can . But with this option the question becomes `` should you '' ? Loan provisions would be most common with a 401 -LRB- K -RRB- plan . While usually hardship related , the reasons have been reduced from hardship only status for some time . Trucks , cars , vacations were the norm for a while with retirement plans loans . The problem with pension loans is they take funds out of the investment pool . Sure you 're paying yourslef back , but at 5 % . What happens when those funds , left alone would have made 10 % ? Also if you leave employment for any reason , the loan balance is due immediately or it becomes a pre-mature distribution . So taxable income and a 10 % penalty . Borrowing from your pension is a last resort only choice . Never a first choice . 