An interesting dichotomy is taking place in an analysis of 401(k) plan loans. While the likelihood of having a plan loan in any given year is relatively low, more participants had loans at some point between year-end 2016 and year-end 2020.

That's according to the Employee Benefit Research Institute and Investment Company Institute's report – "How 401(k) Plan Participants Use Loans Over Time: An Analysis of Loan Activity of Consistent 401(k) Plan Participants, 2016–2020," which analyzed 401(k) plan loan usage for a sample of 2.2 million consistent loan-eligible 401(k) plan participants who maintained accounts in each year between 2016 and 2020.

Overall, 29% of 401(k) participants in the sample had an outstanding loan at some point in the five years analyzed, compared with 18% at year-end 2016. Repeat-loan 401(k) plan participants represented 16% of the overall sample (55% of the 29% with any loans over the five years).