Sources verified · July 12, 2026

401(k) loan tradeoffs, separated into the parts that matter.

Use current plan terms and a recordkeeper quote to review availability, paycheck pressure, match effects, retirement impact, job-exit exposure, and alternatives. The result explains consequences without choosing for you.

New here? See it work with example numbers:

Employer-loaded plan rules can prefill stable provisions. Your balance, loan history, household cash flow, debt, employment concerns, and scenario result stay private to your session.

Availability and current quote

Plan permits loans

$10,000 exception in plan

Vested balance

Requested loan amount

Current plan-loan balance

Highest balance in last 12 months

Recordkeeper current maximum

Use the current quote as the transaction value.

Plan total loan ceiling

Current loan count

Plan maximum loan count

Loan terms and fees

Quoted interest rate

Term in years

Payments per year

Biweekly payroll is 26.

Origination fee

Annual maintenance fee

Fee payment method

Paycheck and household capacity

Current take-home per paycheck

Take-home source

Essential monthly spending

Required monthly debt payments

Other fixed commitments

Liquid savings after transaction

Contribution, match, returns, and exit stress

Annual compensation

Current contribution rate

Contribution during loan

Employer match rate

Match up to percent of pay

Years to retirement age

Lower return path

Selected return path

Higher return path

User-selected exit month

Taxable annual income

Filing status

Tax model

Entered state tax rate

Account source tax status

10% additional tax status

Outside cash for exit event

Alternatives

Cash available

External loan amount

External loan rate

External loan term

Delayed or reduced expense

Income stress reduction

No ads or lead-gen

What this tool does and doesn’t do

Does: a scenario-based 401(k) loan tradeoff review using effective-dated federal plan-loan rules, plan provisions entered or prefilled for the user, the current recordkeeper quote when available, standard amortization, employer-match math, multiple return assumptions, and event-based separation/default stress tests.
Doesn’t yet: automatic recordkeeper-document interpretation, full plan-document legal interpretation, Monte Carlo return modeling, a 50-state tax engine, complex Roth or after-tax basis modeling without a provider-confirmed taxable amount, credit marketplace offers, product rankings, or employer access to individual scenario details.
This is neutral decision support. Current plan terms and provider records control the actual loan, and tax-specific questions need review by a qualified tax professional.