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View Full Version : Can I close out my 401k plan


mark elder
Jun 13, 2013, 07:08 AM
Im on light duty.can I borrow from 401k plan

ebaines
Jun 13, 2013, 07:13 AM
Please clarify what you mean by "light duty" Do you mean you are a part-time employee? And do you want to close it out (which is the subject of your post) or do you want to borrow from it (as you asked in the body of your post)?

If you are a part-time active employee (not retired) you may be able to borrow from your 401(k), but it depends on the specific rules for your plan. Most plans would allow you to borrow if you are a part-time worker as long as your pay is sufficient to cover the repayments and interest, but again plans vary, so check with your plan administrator to see whether being on "light duty" affects your ability to borrow from your 401(k).