How to Apply for a 401k Loan

Verify with your company's human resources department or benefits representative that your pension plan allows for hardship loans.

Request the forms to apply for the 401k loan and review the paperwork.

Verify that you do qualify for a loan under the plan provisions.

Complete the necessary paperwork needed by the retirement plan administrator.

Attach any requested documentation.

Photocopy everything you are sending to the administrator and keep a copy for yourself.

Send or fax your paperwork to the specified location.

Wait for the 401k loan papers to be sent.

Sign and have the loan agreement notarized.

Return the paperwork to the administrator.

Await the disbursement of your loan.

Remember your net income will change because of the repayment of the loan.