Can I get a loan from my 401k?

4 Replies


When buying my primary residence 9 years ago, I utilized a $15k loan from my solo 401k account for cash down payment. I have a few more thousand $ to pay back that loan.

I now have another 401k account through my current employer. I am looking to buy another house and am wondering if I can get a loan from either of these 401k accounts? Will it financially work to my advantage?

Thanks so much :-)

@Rachan Malhotra

Many 401ks allow for loans up to 50% of the account value or $50k whichever is less. Most 401ks require the loan to be paid back in 5 years. Check with your plan administrator(s) to see what is available to you. 

Not enough info to determine if it works financially for you. 

If you are looking for investment property, not your residence, You may also want to investigate using IRAs or 401ks to purchase the property directly. 

Yes you can.

Sum total of loans cannot be more than 50% of vested balance or 50K whichever is less.

Onus is on you to make sure that you do not cross the 50k line as your employer has no knowledge of your other solo 401k.

Rachan, contact your employer HR department and inquire with them if your employer 401k plan has loan provision. You can't get any more help here on the forum, in other words 401k loan is plan specific, many plans do offer it and you have to inquire with them for details.