In fact, about 1 in 5 workers have borrowed or withdrawn money from retirement accounts, according to a recent survey from SoFi.
In a narrow set of circumstances, it can be a smart financial move, says Jared Friedman, a certified financial planner and partner at Redwood Financial Planning in Scotch Plains, New Jersey.
How 401(k) loans workThe specifics of a 401(k) loan will vary from employer to employer, but here's how they generally work.
Like most loans, you'll be charged a rate of interest.
And while money in your 401(k) is put in pre-tax, the money you pay back is in post-tax dollars.
Persons:
doesn't, Anne Lester, Jared Friedman, Friedman, you'll, haven't
Organizations:
CNBC, Redwood Financial
Locations:
SoFi, Scotch Plains , New Jersey