Each plan sponsor (employer) decides if loans are allowed, and if so what types, and for what reasons... some allow general purpose (any reason) some only for primary home... others for hardship reasons Only... if it is hardship reasons only, you would have to show proof of eviction or forclosure, medical bills (unpaid), funeral expenses, secondary education expense, or casualty loss to your primary residence... If you were told it was hardship reasons only...then you will have to show the above proof... they cannot go against the plan document......

Thank you that was very very helpful t.c. and thanks a million

Depends on the 401k, some provide for the ability to borrow up to 50% of the vested amount or 50,000, with a five year payback term.

That being said, I would only do so in the cases you describe, because you can easily eat into your retirement. Money compounded over time is immensely powerful; if you dip into that now, your 50,000 withdrawal could cost you two to three times that in retirement, depending on hold you are.

Someone said that north carolina law says even so i can still borrow what i have invested into it because it is my money wasn,t sure what i should or should not do nor what way to approach it

The law is not state specific.. It is ERISA law.govererned by Internal revenue Code.. You normally can borrow 1/2 of your vested balance... but it is completely up to the employer.. (sponsor)--- Depending on the company they may be willing to change the document with an AMMENDMENT to the plan... but it does cost them money..... ---Even though it was your money you contributed... it was under tax deferred status and placed into a retirment plan with very strict guidelines on withdrawals and loans.... -It is not your money again, unless you leave the company, reach retirement age or become disabled... there is usually also a hardship WITHDRAWAL rather than a loan.... this would be a withdrawal of YOUR contributions ONLY, but for the same above reasons only

Yes you can. My sister is. But, only so much. Then if you borrow more then your allowed you have to pay a very high %.

You cannot borrow more than 50% of your vested balance NO MATTER WHAT (IRS LAW)--- the interest rate is set at prime in most cases.. it cannot vary per participant.... it is not based on credit or approvals... but your vested balance and the plan document.

My brother in law borrows every year against his, how is this?