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Can anyone tell me the positive and negative aspects about borrowing money from your 401k? A couple of employees at my work have enough money in their 401k's that they could take a loan out against the 401k and payoff their home mortgage. The interest that was being paid to the bank now gets paid to the 401k.

I know the money must be paid back within 5 years and that's not a problem. Neither person pays enough in interest that they can use it for tax purposes. This seems like a great option, but what are the pitfalls, if any?
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