How Does a 401K Loan Work and What are the Pros and Cons of a 401k Loan?
Most employers provide access to the 401K plan with a loan option. Please be advised, accessing your 401k for loans is typically not advised; unless necessary to avoid a financial hardship, particularly because it hurts the ability for you to continually save for your retirement, which is the main reason your 401K was created.
There are many appetizing features to a 401K Loan. A person can borrow up to 60 months or 5 years. The amount they can borrow is between $1000 to $50,000. The amounts may differ, depending on your employers 401K loan rules and regulations.