yes you are missing that your 401k will receive less money and over time there will be less available when you retire. you also have to pay the 401k interest on that loan which is non-deductible personal interest. $45/wk is only about $2k per year or $10k hardly enough to pay for a Telsa. According to IRS regulations, 401(k) loans must be repaid in “substantially equal payments that include principal and interest and are paid at least quarterly.” You must repay the loan (typically through payroll deductions) within five years. Failure to repay and you have a taxable distribution and possibly penalties if this is an early withdrawal.
