Should You Take Money From Your Retirement Plan?

Quick facts about borrowing from your 401(k). The maximum amount you can borrow will be $50,000 or 50% of your vested account balance, whichever is less. Repayments will be automatically taken from your paycheck after taxes. Some plans do not allow you to contribute to the plan while you are making loan repayments. Borrowing rules depend on company—some allow it, some don't. And if you don't repay a loan on time, you might owe taxes and penalties.

7 Things to Know About 401(k) Loans