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<p>[QUOTE=&quot;Hotpocket, post: 1896558, member: 44182&quot;]Don&#039;t borrow money from your 401k.&nbsp; Yes, the interest you pay on the loan you pay to yourself (forced savings), but that doesn&#039;t make up for the opportunity cost of what you would have earned had you left the money in the account.</p><p><br /></p><p>Secondly, and most people do not know this, interest you &quot;earn&quot; on the money borrowed is taxed twice.&nbsp; Your loan payments (principal and interest) are deducted from your paycheck <u>after</u> taxes (not before taxes like your contributions likely are), but the interest paid is considered pre-tax &quot;earnings&quot;.&nbsp; So when you eventually withdraw that money upon retirement it will be taxed again as income.[/QUOTE]</p><p><br /></p>

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