How do I go about borrowing money from my 401K

The plan for your 401K usually has terms of hardship which will allow you to borrow against your 401K. However, sometimes you can also take out a loan against your 401K with a 25% penalty.

Talk to your Benefits Administrator/HR person at work. They will better be able to tell you the particular rules of your plan.

Contact the 401K admin and ask for the terms and conditions.

I have not heard of being penalized to get a loan from your own 401k fund. 25%? Are you sure? Even the penalty for cashing 401k prematurely is much less than 25%