Loans vs. Withdrawals

The following Loans vs. Withdrawals is designed to educate employees on the difference between loans and withdrawals and the different types of each. 

What you will learn: 

• Recognize that 401(k) loans and withdrawals are available only when allowed by plan rules.

• Distinguish between borrowing money through a 401(k) loan and taking money out through a withdrawal.

• Identify how loan repayment requirements can affect tax treatment and account value.

• Recognize how withdrawals may affect taxes and future retirement savings.

• Use plan materials to identify loan availability, withdrawal rules, hardship requirements, and related account impacts.

Once completed, you will receive a certificate of completion. Course length: 15 minutes.

The information contained in these trainings was derived from publications of the IRS and U.S. Department of Labor (Government Sourced Material). None of the planners, authors or instructors for this activity have any relevant financial relationships to disclose. The Government Sourced Material used by AMC is available for no charge on their associated websites. The use of the Government Sourced Material by AMC does not imply endorsement or recommendation by the IRS and U.S. Department of Labor or by the United States Government, of AMC, its enterprise, its facility, its services or its products. © 2026 American Medical Compliance, no copyright claimed in Government Sourced Material. If you are not completely satisfied with this course within 30 days you will receive a full refund.