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If I need some money, is it better to borrow from my line of credit at the bank, or from my 401K? I keep reading that a person should never borrow from their 401K, but I'm having a tough time understanding why. If I borrow from the bank, I'm paying them interest. If I borrow from my 401K, I'm paying myself interest. When the loan is paid off, I have all my money back in my 401K + interest. Can someone explain how can I be ahead by paying interest to the bank?


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