Can You Borrow Money From Your Retirement Plan? 
Borrowing money from your retirement plan for emergencies can be helpful , but it shouldnt be used as a bank . Qualified retirement plans have their own regulatory rules of engagement for accessing plan participant money . Qualified plans charge interest , generally require repayment at employment termination or transfer of funds . If qualified pan money is deemed received it will trigger an ordinary income tax event and a 10 % penalty if youre under 59 . Non-qualified retirement plans that use a TAMRA compliant non modified endowment contract can borrow accumulated cash values at a low or no interest as the long as the policy is kept in force for the life of the insured . 