401k Loan? Can you deduct the interest from the Loan? How?

[MinhT]

No, you cannot deduct interest which you pay on your 401(k) loan.

[daveandrade89]

There's an exception: if you are using the loan to finance, say, a rental property AND the loan proceeds are coming from funds that were not your own elective deferrals, then the interest expense would be deductible, provided that you could provide proof of the funds use through interest tracing.

Essentially, it's only deductible for certain uses AND only if the funds being loaned are your employer's match / profit sharing, etc.