You will need to repay the loan before you take a distribution. Otherwise the balance will be considered an inservice withdrawal and you will owe a 10% penalty and it will be added to your taxable income. If your new job has a 401K, You can get a short term loan, pay off the 401K, rollover the balance into your new company's plan and take a loan from the new co to repay the short term loan. I've dones this with 2 job changes.