 TITLE: Should I Withdraw Money from My 401(k) or IRA? CONTENT: How Are Withdrawals and Loans Different?\n----------------------------------------\nWhen you withdraw money from a 401(k) or an IRA, you're not required to pay it back. But when you take out a 401(k) loan, you're borrowing the money, so you are required to pay it back.\nYou're usually given five years to pay back a 401(k) loan. If you're using the money to buy a primary residence, you might be eligible for a 25-year payback period.\nThe main difference between a loan and a withdrawal, however, is that with a loan, you pay back your retirement account so it can begin earning money for your retirement again. Because you don't pay back a withdrawal, that money is no longer working toward your retirement savings—unless you are able to invest it at a later date in a traditional IRA or Roth IRA plan. END