HI. I'm on a Leave of Absence from my place of employment. I need money and the only source I have is my 401k... I took a loan out earlier this year, from the 401k, not knowing I could only have one loan out at a time. So now I feel my only option is to close the account and take whatever is leftover after taxes... Can I do that? Do I need the companies permission? Thank you in advance for any help

posheak

no its yours, youll just take the big hit 10% penalty and its taxable income when you take it out.

ScottGem

if you can temporarily borrow enough to pay off the existing loan, you can then take a larger loan to pay off the temp loan.

Taking an in service withdrawal from a 401K is a very last resort. The penalites and tax consequences are hefty.