Borrowing from your 401(k) plan can be a fast, advantageous way to meet serious financial needs - here s everything you need to know about 401(k) loans insider@insider.com (Walecia Konrad) © Jose Luis Pelaez Inc/Getty Images If you need funds quickly, a 401(k) loan offers several advantages over other loans or 401(k) plan withdrawals - but there are many rules to follow. Jose Luis Pelaez Inc/Getty Images
Borrowing from a 401(k) means withdrawing funds from your plan that you later repay with interest.
A 401(k) loan avoids the taxes and penalties that come with outright withdrawals.
Borrowing from a 401(k) has drawbacks, like the suspension of contributions and overall loss of account growth.
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