Planning to Borrow From Your 401(k)? You May Want to Rethink That
When you need to borrow money, there are different options you can explore. If your credit is strong, you can seek to take out a personal loan. If you have a home you've built up equity in, you can try to borrow against it.
But if you're sitting on a pretty sizable 401(k) plan balance, then you may be inclined to just borrow money from yourself. Many 401(k) plans today allow participants to take out loans and pay themselves back over time. And at first, this might seem like the easiest route to take when a need to borrow arises.
But while you might think tapping your 401(k) for a loan is a good idea, it's a move that could sorely backfire on you. Here's why.
Source Fool.com
