If you have access to a retirement plan at work, like a 401k or a 403B, it's a terrific way to invest for the future and get money-saving tax advantages.

Once you're enrolled, you elect a percentage or a flat amount of each paycheck that you want to contribute to your

account. Some plans allow participants to take loans up to certain limits. This podcast will

review the rules and the pros and cons of borrowing from your 401k or your 403B, whatever plan

you have at work. You'll learn some downsides to avoid and

tips for making wise decisions about your retirement funds. Welcome back. It's episode 920 of

Money Girl. I'm Laura Adams, an award-winning author, spokesperson, speaker, and founder of The Money Stack. That's my substack newsletter

and host of this podcast with over 44 million downloads. If you enjoy the free content we love

creating for you here, please take a moment to rate and review the show in your podcast app.

And I'd love to hear if you're enjoying the show or if it's helped you

improved some aspect of your financial life. You can do that by leaving a review,

calling 302-364-0308 to leave a voice message, or visiting laura d.adams.com. That's my website.

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It includes the exact templates I use to manage money.

All right, let's talk about 401K loans. A 401k or a 403B loan isn't technically a loan because

there's no lender. You may have the ability to tap your account balance up to certain limits if you pay back

borrowed amounts with interest and according to a set repayment schedule. While I know it

might seem strange to repay yourself with interest when you borrow from your own 401k,

but the purpose is to compensate yourself for lost time because when you withdraw money

...