Ah, I see -- it is a problem borrowing from 401k if you pay it back out of your existing contributions. Makes sense -- I've just never thought of it that way.

Ah, I see -- it is a problem borrowing from 401k if you pay it back out of your existing contributions. Makes sense -- I've just never thought of it that way. To me, it only makes sense if you are substituting it for a regular loan, and not touching the contributions overall. In other words, if you are in a good financial situation to take out a regular loan, then a 401k loan could make sense also.