Borrowing Your Own Money
Some employers, who may or may not allow hardship withdrawals, will let you borrow money from your plan at work. These loans have limitations, but because the amount you borrow can be replaced, taking a temporary loan may be a better idea than a hardship withdrawal.
Most plans will let you borrow up to half your account balance—only the vested part, of course—up to $50,000. Loans are usually paid back over five years, except if you’re borrowing for a home, in which case the loan term might be longer. As with any other loan, you have to make regular payments and pay interest. Payments are withheld from your paycheck, so you need to be ready for the reduced take-home pay. The interest rate is set by the plan, ...