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Ouch. It is never a good idea to borrow against your retirement. The economic impact of compound interest losses can be staggering, and if you lose your employment during the payback period you will likely be forced to repay the outstanding balance in full. The other issue is that this isn’t paying off debt, it’s merely transferring debt around. I would stop all 401k contributions and pay this off asap. You will probably have to save up enough to pay it off in full as most 401k loans don’t allow incremental payments towards the loan balance. Typically it’s payment in full, or monthly payments on schedule.