401k Loan and 401k Loan Repayment

Can I take a 401k loan from 401k plans? If an 401k loan is possible, how does this work?

Whether you can take a 401k loan or not depends on the provisions of your employer's 401k plans. 401k plans have 401k loan provision and not all 401k plans allow a 401k loan.
 
In general, if 401k plans permit 401k loan, you take a 401k loan withdrawal and promise to repay that 401k loan, with interest, over a fixed period of time.

How much 401k loan can I borrow?

How 401k loan works is this. The most 401k loan you can borrow is 100% of your vested 401k plan account balances up to $10,000 (if permitted by the 401k plan) or up to the lesser of 50% of your vested 401k account balance or $50,000, minus your highest outstanding 401k loan balance over the last 12 months, whichever is less. If you continue to repay the 401k loan, withholding taxes and penalties will not apply.

How does 401k Loan Repayment work after termination of employment?

How 401k loan repayment works is as follows. In general, if you have an outstanding 401k loan balance at the time you end your employment, and if you do not make 401k loan repayment arrangements, the loan is considered to be in default and the unpaid 401k loan balance is considered to be a taxable 401k distribution.