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<p>[QUOTE=&quot;Hotpocket, post: 1898027, member: 44182&quot;]Well, because money is cheap at the current rates.&nbsp; For example, lets say you have $10,000 in a mutual fund earning 20% annual return.&nbsp; You can either borrow the $10,000 from your 401k and lose out on that return on investment, or borrow $10,000 from a bank/credit union at maybe 4% or&nbsp; 5%.&nbsp;&nbsp; I would borrow outside the fund everytime.&nbsp; </p><p><br /></p><p>Great that your plan does not charge any interest (you sure about that?), but most plans do.&nbsp; And if you pay interest, its paid with &quot;after-tax&quot; money and then taxed again as earned interest in your plan when you withdraw it.</p><p><br /></p><p>Do whatever you want obviously, but 401k loans are generally a bad idea unless you are strapped for cash and have few options.[/QUOTE]</p><p><br /></p>

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