It's a bad idea to take money out of your 401k for anything except your retirement. Sure, there are extreme circumstances where it may be necessary, but it's generally considered a last resort.
If you withdraw from your 401k, you will pay taxes and a 10% penalty on the amount you withdraw. Ouch.
If you borrow from your 401k, you will have to pay that amount plus interest back to the account. True, you are paying yourself interest, but you're paying with after-tax money. Also if you leave your company, you will likely have to pay back the entire loan immediately.
And keep in mind whether you withdraw or borrow from your 401k, that money is no longer growing for you. You're missing out on valuable tax-deferred growth.
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