4 Reasons You Should Never, Ever Take a 401(k) Loan

If you've got a pressing financial concern and money in your 401(k), you may be tempted to take the cash out by taking a 401(k) loan. After all, the money is just sitting there, you'd be paying interest to yourself if you took out the cash, and you may have plenty of time to put the money back before retirement.

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While it can theoretically seem like a smart financial move to use that money to pay off high interest debt, put down a down payment on a house, or fulfill another immediate need, you should resist the urge and leave your 401(k) cash right where it is. The money already has a job -- helping you afford food, housing and medicine when you're too old to work -- and the only reason you should ever take it out is for a true life-and-death emergency. Here are four big reasons why you should leave the money in your 401(k) alone so you don't have major regrets later.

Source: Fool.com