KBID 440 Date Created: 10/1/2004 Date Modified: 1/17/2020
Terms of Use
Interest on 401(k) loans is generally not tax deductible regardless of how you use the money. Almost every 401(k) account balance includes some dollars from salary-reduction contributions. Therefore, interest on loans from these types of plans is rarely deductible. Even though the interest is not tax deductible, you are in essence paying interest to yourself.