If I have a 401k with (for the sake of argument) $100,000 in the US, and I want to borrow the maximum ($50,000) for a mortgage on a house in Canada, is this possible?

If so, what are some of the problems I should consider?

Edit: I mistakenly wrote "withdraw" instead of "borrow"

  • you can always take money out (for whatever reason) as long as you mind any penalty or fees associated with it. The intent of the withdrawal is secondary and shouldn't factor really. Dec 8, 2015 at 19:58
  • 1
    Would this be a loan from the 401(k), or a withdrawal? Are you retirement age? Are you still employed at the company that holds the 401(k)? Dec 8, 2015 at 21:22
  • 1
    You can, but read the answers and comments here about borrowing from a 401k.
    – blm
    Dec 8, 2015 at 22:26
  • 2
    Loans from 401(k) plans have to be paid back; else they become withdrawals which will incur penalties etc if you are young. Also, if you are not currently employed by the sponsor of the 401(k) plan where you hold 100K, are you sure that that you can get a 401(k) loan? Finally, if you need to get 50K for a downpayment on a house and so have mortgage payments to make, how on earth are you going to pay back that 401(k) loan? Dec 8, 2015 at 23:01
  • 3
    "If I no-longer work for that company, am I not able to take a loan from the 401k?" Call your ex-HR Department but don't be surprised if the answer is No. You no longer work for them; why should they be interested in obliging you? Dec 8, 2015 at 23:53

1 Answer 1


Can't comment yet, but typically 401(k) loans are paid back through payroll deductions. If you no longer work for the company than you have no payroll to deduct from. The loan provisions are stipulated in the adoption agreement for your plan.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.