Borrowing From 401(k) Can Lead to Trouble

Thinking about borrowing from your 401(k)? Be careful.

Nest Egg 2 close up
(Image credit: Getty Images/iStockphoto)

Some 401(k) participants have found an easy source of credit: They're borrowing from their own accounts.

But be careful. Although most plans offer loans of up to half of your vested balance (with a $50,000 limit), these deals might not be as sweet as they seem.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here