Annual rates of return can vary significantly and will depend upon your asset allocation and other variables. Generally, higher target returns carry greater risk.
Generally, you can only borrow up to 50% of your vested account balance, up to a maximum of $50,000. Your employer may have different plan-specific limits.
Many 401(k) loans charge one to two points above the prime interest rate.
If the IRA holder turns 70½ this year, he or she can defer the first distribution until April 1 of the next year. If the holder is older, he or she would normally be required to take an RMD before December 31 of this year. RMDs are considered taxable income for the year in which they are taken.
Some plans may permit a payback period of longer than five years if the loan is used to purchase a primary residence.