 TITLE: How to Borrow Money From Your 401(k) CONTENT: How Much Can I Borrow?\n----------------------\nThe most anyone can borrow from a 401(k) plan is $50,000, but if the total vested amount in your plan is less than $100,000, you can only borrow up to half of that total. One exception in some plans is an option to borrow up to $10,000, even if you have less than $10,000 in vested funds.\n### Repayment Terms on 401(k) Loans\n*   You must pay back your loan within five years. You can do so via automatic payroll deductions, the same way you fund your 401(k) in the first place. There is no penalty for paying off the loan sooner than that.\n*   You must pay interest on the loan, at a rate specified by your 401(k) fund administrator. Typically the rate is calculated by adding one or two percentage points to the current prime interest rate. END