Understand the true cost of borrowing from your 401k — monthly payments, lost investment growth, tax impact, and the full opportunity cost comparison.
IRS limit: lesser of $50,000 or 50% of your vested balance
Monthly principal and interest breakdown (first 24 months)
Personal loan assumed at 12% APR for comparison
IRS Limit
$50k or 50% vested
Max Term
5 years (home: longer)
Double Taxation
Repaid with after-tax $
Default Risk
10% penalty + income tax