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7 Things You Need to Know if You're Considering a 401(k) Loan

Don't take a 401(k) loan without reading this.

By Kailey Hagen – Updated Dec 4, 2024 at 5:26PM

Key Points

  • 401(k) loans have a max of $50,000 or 50% of your vested balance, whichever is less.
  • Repaying a 401(k) loan within 5 years is crucial to avoid tax consequences.
  • Not all 401(k) plans allow loans; check with your plan administrator first.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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