How do you pay back a 401k if you borow against it?

Question

do they just take the money you want to pay back out of your check?

Answer 1

hello - you arrange for them to take it out of your paycheck.  However - money put into a 401K is pretax dollars.  

Assume you are in the 30% tax bracket - you borrow 100 from the 401K, you need to make 130 to pay that back (its paid back with after tax money), and thats before interest lost from not having it in the account.  That's a loan at 30% interest.

Try to avoid taking it out -

Good luck -