401k Investors Whacked With Big Penalty

Protect Your Retirement Account

There is also another reason not to take out a loan if you are struggling to pay your bills. Retirement accounts such as 401(k)s are protected from creditors if you file for bankruptcy. If you borrow that money, it is not protected.

Schwab has seen volume at its call center double in the last two weeks but less than 10 percent of the callers have inquired about 401(k) plans and there has not been an increase in loan inquiries or requests.

Kohmann suggests that people call their investment company to get advice.

"We're not our own doctor, we're not our own mechanic and we shouldn't be our own investment adviser. Maybe the most important organ in investing is the stomach," he said. "Panic is not a strategy."