Can I Borrow From My Retirement Plan? 
Assuming youre addressing qualified plans , the answer is yes , but you need to know the rule of engagement . Borrowing from a 401 -LRB- k -RRB- is generally permissible , but there is a cost of borrowing . If you are terminated from employment or transfer of your 401 -LRB- k -RRB- to an IRA , the plan may require repayment . There are penalties for non-compliance and the possibility that non-repayment may trigger an ordinary income tax event and in addition 10 % penalty if youre younger than 59 . 