401(k) Loan: How it works and how to Have one Why does an excellent 401(k) financing functions? To be recognized for a loan out of your 401(k), you’ll want to realize multiple assistance. Not absolutely all 401(k) arrangements allows you to obtain out of your membership, so make sure you seek the advice of the organization dealing with your own money very first. This is what you need to know: Financing numbers: You may either borrow $50,000 otherwise 50 % of the latest vested balance – any sort of is actually faster. not, when the fifty% of the balance are smaller compared to $10,000, the new borrower takes out to $ten,000.