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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. 

Interest on home equity loans, for example, is tax deductible, so that may be a better option than taking a loan on your 401(k).