Workplace plan loan

Illustrate payment, interest paid back to the plan, and hypothetical missed market growth.

Borrowing from a workplace plan can change household finances. This is an educational comparison, not one of the retirement solutions you should treat as advice.

Labels the illustrated state and tax-year pack. This tool’s numbers do not change with state income tax. Medicare, HSA, 401(k), and RMD rules stay federal.

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Nothing is saved. Leaving this page restores the example.

Example report

Illustrated results

Monthly loan payment

$396

Interest paid to the plan

$3,761

Estimated missed growth

$6,765

Loan amount

$20,000

Interest paid vs missed growth

Assumptions

  • Missed growth assumes the borrowed amount could have earned the entered expected return for the full loan term.
  • Plan loan interest is typically paid back to your account; this is still an educational cost comparison, not advice.
  • IRC §72(p) generally caps a workplace-plan loan at $50,000 for this balance (lesser of $50,000, the vested amount, and the greater of $10,000 or 50%).
  • Rule year 2026: IRS federal income tax (2026-rev-proc-2025-32) and California state rules (2026-enacted-v1; progressive income tax). Medicare IRMAA, HSA, 401(k), and RMD tables are federal.

Educational planning software—not investment, tax, legal, Medicare, or Social Security advice. Projections depend on your inputs and assumptions. Optional professional review is separate when available.

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