: The interest you pay—typically the prime rate plus 1–2%—goes back into your own account rather than to a bank.
: Most plans require the loan to be repaid within five years through automatic payroll deductions. Using a 401(k) loan to buy a car: Is it ever a good idea? using 401k to buy a car
A 401(k) loan involves borrowing your own retirement savings and paying yourself back with interest over time. : The interest you pay—typically the prime rate