We have a couple of expenses coming up and I am debating on just taking a loan on our 401K. We don't really have enough equity in our house now with the fall of the real estate market to go that route. Has anyone taken a loan on their 401K? How hard is it to do? Are there penalties? Can you pay it off faster if you can?
You can pay it off faster than what is required, you just make payments against it with your employer. The only time there are penalties are if you lose your job and you can't pay it back at that time. You are taxed like 30% or more on it.
I took one out at work, and so far so good.
I have never done that before but I would think very hard about that especially since the economy is still so volatile, you never know when you can lose your job.
Taking a loan on your 401K. 
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