What You Need to Know Before Taking out a 401(K) Loan

Borrowing money from your 401(k) account has both pros and cons. Think over the situation before you take action. Maklay62/Pixabay

Financial hardships happen, and can be experienced by anyone. Unexpected layoffs, putting kids through school, and the changes caused by COVID-19 to name a few.

Regardless of the reason, when money is needed, there is no shortage of options available for obtaining emergency funds. Borrowing from a retirement fund, specifically a 401(k), is an option many people choose.