If you have financial problems, borrowing from your 401(k) plan may seem like an answer. With low interest rates and immediate approval, should you borrow from your retirement plan for use in your cash flow situation?

Generally, it's a bad idea. Shorting your plan will cost you a fortune. You're losing years of tax-free compounding for every dollar you borrow. If you leave your current employer, you may be required to pay the loan back immediately. If you fail to pay it back on time, hefty penalties and tax charges will take a large amount out of your retirement savings; money that otherwise would be compounding for years.

Calculate how much money you will lose by entering the information below.