401(k) Loans: How They Work Including Taxes, Interest Rates and Fees.

This article discusses the pros and cons of borrowing money from a 401(k) retirement plan. It explains that higher interest rates have made these loans more attractive compared to other types of loans, and the 9.5% interest rate that borrowers are required to pay themselves reduces the risk of missing out on market returns. However, there are downsides to these loans, such as the potential for defaulting and triggering income taxes and penalties. The article also mentions factors to consider, such as taxes and fees, and suggests alternatives like transferring high-interest credit card balances. [Extracted from the article]