How to Take a 401k Loan

If you are currently enrolled in a plan that does not allow 401k loans, it will not be an option for you. The typical repayment period is five years, but it could be longer if you intend to use those borrowed funds to buy a home. You have to make payments in equal amounts that include principal and interest which get deducted from your paychecks. If you repay a 401k loan on time, you don't owe income taxes or penalties.