How Much Can I Borrow from My 401k?

Shawn Plummer

CEO, The Annuity Expert

Understanding 401k Borrowing Limits

You can borrow up to 50% of your vested 401k balance or $50,000, whichever is less. This rule applies to most 401k plans.

Repayment Terms

  • Repayment Period: Generally, you must repay the loan within five years.
  • Interest: You pay interest on the loan, but this is credited back to your 401k.

Special Considerations

  • Job Change or Termination: If you leave your job, the loan may become due immediately.
  • Tax Implications: If you don’t repay the loan, it might be treated as a taxable distribution.

401k Borrowing Table

Vested BalanceMaximum Loan Amount
How Much Can You Borrow From Your 401K


Borrowing from your 401k should be done with consideration of the limits, repayment terms, and potential risks involved. This guide outlines key aspects of 401k borrowing to help you make an informed decision. Contact us today for a free quote.

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How Much Can You Borrow From 401k?

You can usually borrow up to 50% of your vested account balance or $50,000, whichever is less, from your 401k plan. However, the exact amount may vary based on your plan and employer rules. Borrowing from your 401k should be considered carefully as it may have consequences on your retirement savings.

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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