Find out if 401(k) interest is deductible

September 10, 2010

Learn about 401(k) interest before proceeding with plans to withdraw money.

A: You need to verify with your accountant that the interest paid to the plan can be deducted, since most interest on 401(k) plan loans is not deductible. If it is, then you are correct that this is an inexpensive way to borrow money.