What are the rules for a 401(k) loan?
With a 401(k) loan, you are limited to withdrawing either 50% of your vested account balance or $50,000, whichever is less. One important caveat: If you have less than $10,000 vested in your 401(k) account, you may be able to borrow the full available balance, according to IRS rules
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. However, it's up to your 401(k) provider whether to allow this exception.
Your plan may also set a maximum number of outstanding loans or require the signed permission of your spouse or partner if the loan is greater than $5,000.
