: The interest you pay—typically the prime rate plus 1–2%—goes back into your own account rather than to a bank.
: You can generally borrow up to 50% of your vested balance or $50,000, whichever is less. using 401k to buy a car
A 401(k) loan involves borrowing your own retirement savings and paying yourself back with interest over time. : The interest you pay—typically the prime rate