Is It Smart To Take A Loan From Your 401K? 
That is a great question ! There are some good reasons for borrowing from your 401k , and some bad ones . The good reasons are that they are typically fairly easy to get , and often at much lower interest rates than a commercial lender would give . And depending upon the structure of your 401k , in some cases , the interest that you pay is to yourself , so there is less loss on the loan itself . The bad reasons are worth considering . The worst is what happens if you are let go , or leave the job before the loan is paid off . In many cases the loan has to be repaid within a short period of time , may have serious tax consequences , and that 's not even considering what the withdrawal of the funds may do to the earnings power of your 401k if it 's not structured correctly . The best thing to do is speak with your plan administrator , or HR person , and find out the details of taking out a loan and what the terms are . Good luck , and thanks for asking ! 