How Does Borrowing From Your 401K Work?

  1. 3998 POINTS
    Matt Benore
    Founder, DenverWest Insurance Professionals, Inc.,
    This is pretty simple actually.  Borrowing from your 401(k) involves filling out a form indicating how much you would like to borrow.  If the money is available, they you will get a check in that amount.  Because this is a loan, payments would most likely be set up taken from your current paycheck if you are working.  There is interest you will pay back as well however you are paying yourself back.  If you withdraw the funds, you may have a tax liability to pay for, fyi.
    Answered on June 9, 2014
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