Decision guideBorrowing 3 min

Should I borrow from my 401(k)?

A 401(k) loan lets you borrow up to half your vested balance (max $50,000), repay it through payroll over 5 years, and pay the interest to your own account. Not every plan offers one. The real risks are what the money is for and what happens if you leave your job.

30-second explainer

43s

The short version — then walk through the questions below for your situation.

Question 1 of about 3

What's the money for?

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Educational only — not legal, tax, or financial advice. Typical ranges are shown; your contract, lender, and state law set the exact rules. MoneyFAQ is not a lender.