Borrowing or money that is withdrawing your 401(k) plan Arrange loans To discover if you should be permitted to borrow from your own 401(k) plan and under exactly exactly exactly what circumstances, consult with your plan’s administrator or read your summary plan description. Some employers allow 401(k) loans just in situations of pecuniary hardship, you might be able to borrow cash to purchase vehicle, to enhance your house, or even use for other purposes. Generally speaking, receiving a 401(k) loan is easy–there’s small paperwork, and there isn’t any credit check.