I need to get my car fixed and I need to know how to borrow $1,500.00
Some plans allow participants online access and loans may be modeled and processed through the plan website. Otherwise, you will have to see the plan administrator to obtain a loan application that will be signed and emailed, faxed, or mailed into the Plan Trustee. 401k loans are not always the best route to go, but in a pinch, funds can be accessed fairly easily. If you have exhausted all avenues to obtain the money from other means, try to keep the payback as short as possible.
Loans from 401(k) plans.
Some 401(k) plans permit participants to borrow from the plan. The plan document must specify if loans are permitted.
Generally, if permitted by the plan, a participant may borrow up to 50% of his or her vested account balance up to a maximum of $50,000. The loan must be repaid within 5 years, unless the loan is used to buy the participant’s main home.
Borrowing from your 401(k) is a better option than a using a high interest credit if you do not have other means. The interest you pay on the loan(s) can even count towards your 401(k) account as a gain(ie. $1,500 at 7% annually would reflect roughly a $100 increase). That can be useful in an instance where the money markets or stable funds are paying less than 2%. You could treat the loan amount as part of your "Fixed Income" allocation and stay on track for your long-term retirment savings strategy. Your Plan Adminstrator(or HR Dept) can guide you through the benefits and limitations. In most cases, a check is mailed to you or sent via Inter-Office mail, not direct deposit and I am not sure why. You may be able to pay a fee and have the check Overnighted to you. I hope this helps.