What Is A 401k Loan And What Are Its Pros And Cons?

If you contribute to a 401k plan through your employer, it could be one of your most substantial assets besides your home. And if money is tight and your savings account balance is running low, you might think about how you can tap into the funds in your 401k. But you know there must be both pros and cons of doing so.

Borrowing from your 401k is essentially borrowing money from yourself, but there’s much more to it than that. So, before you decide to take out a 401k loan, weigh your options and determine if it’s really worth it.