3 Reasons a 401(k) Loan Is Better Than an Early Withdrawal

When you need money in a pinch, there's always the option to go to a bank or lending institution and ask for a loan. But why have to beg for a loan when you have money sitting in your very own retirement plan?

If you have a healthy 401(k) plan balance, you may be inclined to take a withdrawal rather than spin your wheels in an effort to borrow money elsewhere. But before you go that route, here's a better option to consider -- a 401(k) loan.

Here's why borrowing against your 401(k) is a more favorable choice.

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Source Fool.com