4 Mistakes to Avoid When Borrowing From Your 401(k)

Via The Motley Fool

By Catherine Brock

Whether you’re consolidating debt or replacing the transmission in your car, a 401(k) loan can provide the low-cost funds you need, fast. After all, you have access to 50% of your vested balance or up to $50,000, whichever is less. And, you’d be borrowing from yourself, which feels better than borrowing money from the bank.

That’s the good news. The bad news is that borrowing from your own retirement plan can lead to bigger financial problems in the future. Here are four mistakes to avoid if you’re considering taking a 401(k) loan.

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