 TITLE: Should I Withdraw Money from My 401(k) or IRA? CONTENT: What Is a 401(k) Loan or IRA Loan?\n----------------------------------\nWith a 401(k) loan, you can borrow money from the account for most any reason. You would repay that money just as you would with a traditional loan. You're not allowed to take out a loan from a traditional or Roth IRA.\nYou won't pay any income taxes or penalty fees on the 401(k) loan amount. You will be charged interest on the loan, though. Fortunately, the interest payments are funneled back into your 401(k) when you repay the loan.\nA 401(k) loan doesn't involve a lender such as a bank or credit union. A credit check isn't required, and your credit reports and credit scores aren't affected. You can borrow as much as 50% of your vested 401(k) account balance or $50,000, whichever is lower.\nOnce you authorize the loan, you'll receive it in your next paycheck or in your checking account if you have direct deposit. END