401(k) Loan Outstanding Rate
13% — holding steady; 1 in 8 workers owe money back to their own 401(k)
What is the current 401(k) Loan Outstanding Rate?
13% of 401(k) plan participants currently have an outstanding loan against their retirement account, according to Vanguard data. Unlike hardship withdrawals, 401(k) loans must be repaid with interest. However, if the borrower leaves their employer, the full balance typically comes due within 60 days — effectively converting the loan into a taxable withdrawal. Source: Vanguard How America Saves.
13% of 401(k) participants carry an outstanding loan
Down from 15% in 2018. Vanguard How America Saves report.
Explore Further
Is this happening to you?
Have you borrowed against your 401(k) or thought about it?
How has 401(k) Loan Outstanding Rate changed over time?
| Period | Value | YoY Change |
|---|---|---|
| 2024 | 13% | +0.0 pts |
| 2023 | 13% | +0.0 pts |
| 2022 | 13% | +0.0 pts |
| 2021 | 13% | — |
| 2018 | 15% | — |
Frequently Asked Questions
What share of workers have outstanding 401(k) loans?
13% of 401(k) plan participants currently have an outstanding loan against their retirement account, according to Vanguard. This is separate from hardship withdrawals — loans must be repaid with interest.
What happens to a 401(k) loan if you lose your job?
If the borrower leaves their employer (voluntarily or involuntarily), the full loan balance typically comes due within 60 days. Failure to repay converts the loan into a taxable distribution with a 10% early withdrawal penalty for those under 59½.
Where does the data come from?
Vanguard's annual How America Saves report tracks 401(k) loan outstanding rates across approximately 5 million participant accounts.
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